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Office of the Attorney General |
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July 23, 2002 DIVISION
OF CRIMINAL JUSTICE - OFFICE OF INSURANCE FRAUD PROSECUTOR |
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TRENTON
- Attorney General David Samson announced that 28 persons named in
ten separate State Grand Jury indictments obtained
by the Division of Criminal Justice - Office of Insurance Fraud Prosecutor
were arraigned in Union County Superior Court on charges that they
"set-up" more than 90 "staged" automobile accidents
which resulted in 24 insurance companies paying more than $2 million
in fraudulent automobile accident and personal injury claims. Criminal Justice Director Harvey identified Anhuar Bandy (aka The Chief), 36, 200 block Livingston Ave., New Brunswick, as the principal organizer and beneficiary of the alleged "staged" accident activity. Bandy, the owner or operator of several North Jersey chiropractic clinics, was charged with racketeering, conspiracy to commit racketeering, conspiracy, Health Care Claims Fraud, and theft by deception. While the investigation uncovered evidence of more than 90 "staged" accidents and the submission of fraudulent insurance claims exceeding $2 million, the indictments charge Bandy and the co-defendants with the "staging" of eight phony automobile accidents and the submission of Personal Injury Protection (PIP) and property damage claims to eight insurance companies seeking in excess of $331,000. The eight "staged" automobile accidents alleged in the indictment(s) purportedly occurred on the following dates and in the following locations: April 23, 1999 in Union Township; July 15, 1998 in Linden; Sept. 9, 1998 in Edison; March 31, 1999 in Elizabeth; April 23, 1998 in Elizabeth; May 23, 1999 in New York City; Aug. 23, 1997 in Elizabeth and Sept. 8, 1997 in Woodbridge. The Division of Criminal Justice - Office of Insurance Fraud Prosecutor’s investigation determined that the defendants constructed or participated in the "staged" accidents by actually causing motor vehicle crashes with innocent, unsuspecting motorists or by colliding with fixed objects such as parked vehicles, telephone poles or other obstructions. Even though the occupants of the vehicles were not hurt, it is alleged that they were "treated" at the Bandy-operated chiropractic clinics or at other, unrelated medical service providers. In some cases, the persons occupying the cars were allegedly aware of the phony nature of the automobile accidents, while in other cases the occupants were unaware that the accidents were "staged". The chiropractic clinics owned or operated by Bandy were in business from approximately February, 1995 through July, 1999. They are the Elizabeth Injury Center, 925 Elizabeth Ave., Elizabeth; Amboy Injury Center, 272B Hobart St., Perth Amboy; Prospect Spinal Trauma Center, 500 Mount Prospect Ave., Newark; Plainfield Injury Center, 430 Watchung Ave., Plainfield; and the Golden Medical Center, 925 Elizabeth Ave., Elizabeth. The clinics ceased operations in July, 1999, as a result of the Division of Criminal Justice - Office of Insurance Fraud Prosecutor’s investigation. As part of the conspiracy to construct the "staged" accidents, the indictments allege that a number of the co-defendants acted as "runners" to recruit persons to participate in the fraudulent activity and that the "runners" were sometimes known as "constructors" allegedly because they constructed the automobile accidents. A "runner" is a person paid by a licensed professional, such as a medical service provider, to procure patients or clients for the professional practice so that insurance claims can be submitted. The indictments also allege that two of the defendants used children to participate in the "staged" accidents. In one indictment, Alejandro Ventura, 28, 500 block of Madison Ave., Belleville, NJ, was charged with two counts of using a 17 year-old or younger to commit a criminal offense. The indictment is based on a Sept. 9, 1998 accident which purportedly occurred in Edison and in which a juvenile was reportedly injured. Ventura was also charged with one count of possession of a weapon without a permit. The weapon was confiscated during the execution of a search warrant at Ventura’s residence. Another indictment charges Angelita Guerrero, 40, 100 block of Sheridan St., Perth Amboy, with one count of using a 17 year-old or younger to commit a criminal offense as a result of a May 23, 1999 accident which purportedly occurred in New York City and where a juvenile was a passenger in the vehicle. It is alleged in the indictments that the 28 defendants submitted fraudulent insurance claims for "staged" accidents to the following insurance companies: Allstate Insurance Company, Kemper Insurance Company, MDA/Newark Insurance Company, Prudential Insurance Company, Republic Western Insurance Company (U-Haul of Arizona), Selective Insurance Company, Sentry Insurance Company, State Farm Insurance Company, Bayside Casualty Insurance, Clarendon National Insurance Company, Continental Insurance Company, Farm Family Insurance Company, Liberty Mutual Insurance Company, Maryland Insurance Company, The Moxon Company, National Continental Progressive Insurance, National General Insurance Company, N.J. Cure, Ohio Casualty Insurance Company, Parkway Insurance Company, Progressive Casualty Insurance Company, Red Oak Insurance Company, United States Automobile Association (USAA), and the New Jersey Manufacturers Insurance Company. Under New Jersey law, crimes of the first degree carry a maximum penalty of up to 20 years in state prison and a fine of up to $200,000; crimes of the second degree carry a maximum sentence of up to 10 years in state prison and a fine of up to $150,000; and crimes of the third degree carry a maximum sentence of up to 5 years in state prison and a fine of up to $15,000. All of the defendants face the possibility of the imposition of civil insurance fraud penalties pursuant to the Insurance Fraud Prevention Act. The investigation was conducted by the Division of Criminal Justice - Office of Insurance Fraud Prosecutor which investigates and prosecutes both civil and criminal insurance fraud related cases. Additional investigative assistance was provided by the New Jersey State Police, Federal Bureau of Investigation, the Union County Prosecutor’s Office, the Hudson County Prosecutor’s Office and the federal Immigration and Naturalization Service. Supervising State Investigator Ciro Sebasco and Deputy Attorneys General Walter Krako and Marysol Rosero coordinated the investigation for the Division of Criminal Justice - Office of Insurance Fraud Prosecutor. Insurance Fraud Prosecutor Greta Gooden Brown acknowledged and praised the insurance industry for their cooperation in the investigation. The following insurance companies contributed time, expertise and other resources, during the course of the extensive criminal investigation: Republic Western Insurance Company, Allstate Insurance Company, Material Damages Adjustment (MDA) Services, Prudential Insurance Company, Selective Insurance Company, State Farm Insurance Company and Liberty Mutual Insurance Company. A listing of the defendants and charges are attached. The press release and defendant list, along with the indictments and images of defendant Bandy and of the Elizabeth chiropractic clinic is available at www.njdcj.org or www.njinsurancefraud.org. # # #
• Anhuar Bandy (aka The Chief), 39, 200 block Livingston Ave., New Brunswick. Charged with conspiracy to commit racketeering, racketeering, conspiracy, Health Care Claims Fraud, theft by deception • Victor Almonte, 36, 1000 block Madison Ave., Elizabeth. Charged with conspiracy to commit racketeering, racketeering, conspiracy, Health Care Claims Fraud, theft by deception • Cesar Caba, 36, Federal Correctional Facility, Bridgeton, NJ. Charged with conspiracy to commit racketeering, racketeering, conspiracy, Health Care Claims Fraud, theft by deception • Elvin Castillo, 25, 200 block Rahway Ave., Elizabeth. Charged with conspiracy to commit racketeering, racketeering, conspiracy, Health Care Claims Fraud, theft by deception. Arrested 5/23/02; $250,000 cash bail • Raynaldo Cuevas, 28, 40 block Wilson Place, Belleville. Charged with conspiracy to commit racketeering, racketeering, conspiracy, Health Care Claims Fraud, theft by deception. Arrested 5/15/02; $150,000 cash bail • Alejandro Ventura, 500 block, Madison Ave., Elizabeth. Charged with conspiracy to commit racketeering, racketeering, conspiracy, Health Care Claims Fraud, theft by deception, use of a 17 year-old or younger in the commission of a crime and weapons violations. Bench warrant issued for failure to appear at 7/22/02 arraignment • Natalio Arnaya (aka Natalio Arreye), 26, 500 block East Jersey St., Elizabeth. Charged with conspiracy, Health Care Claims Fraud and attempted theft by deception • Mohamed Attalla, 30, 100 block East Westfield Ave., Roselle Park. Charged with conspiracy, Health Care Claims Fraud, and attempted theft by deception • Israel Guevara, age and address unknown. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Arrest warrant issued on 4/15/02 • Raquel J. Almonte (aka Raquel German), 100 block Judy Drive, Keasbey. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Arrest warrant issued on 4/15/02; fugitive • Mayreni Guerrero, 23, 100 block Judy Drive, Keasbey. Charged with conspiracy, Health Care Claims Fraud, and theft by deception • Samuel Ortega, age and address unknown. Charged with conspiracy. Arrest warrant issued on 4/15/02 • Ramon Reyes (aka Ceasarin), 400 block Marshall St., Elizabeth. Charged with conspiracy • Ramon D. Arias, 29, 1000 block Broad St., Newark. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Arrested 5/15/02; $7,500 cash bail • Raudi Arias, 24, 1000 block Broad St., Newark. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Arrested 5/20/02; $7,500 cash bail • Joel Cuevas, 23, New Jersey State Prison, Newark. Charged with conspiracy, Health Care Claims Fraud, and theft by deception • Dignorah A. Flores, 29, 100 block Park Ave., Staten Island, NY. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Arrested 5/15/02; $10,000 cash bail • Jose Rafael Perez, 25, 500 block Green St., Elizabeth. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Arrested 6/6/02; $20,000 cash bail; failed to appear at 7/22/02 arraignment and bench warrant issued • Nino Jesus Cruz, 42, 1000 block Sherman Ave., Bronx, NY. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Warrant issued on 4/15/02 • Angelita Guerrero (aka Argola Guerrero), 40, 100 block Sheridan St., Perth Amboy. Charged with conspiracy, Health Care Claims Fraud, theft by deception, and use of a 17 year-old or younger in the commission of a crime. Arrested on 5/15/02; $50,000 cash bail • Cesar Lebron, 45, 1000 block Sheridan Ave., Bronx, NY. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Warrant issued on 4/15/02 • Widania A. Montanez, 29, 200 block Franklin St., Elizabeth. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Arrested 5/15/02; $25,000 cash bail • Kenia D. Gonzalez, 31, 600 block Grier Ave., Elizabeth. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Arrested 5/15/02; $50,000 cash bail • Juana D. Nunez, 28, 100 block Main St., South River. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Bench warrant issued for failure to appear at 7/22/02 arraignment • Luis Henriquez-Uzeta, 34, 300 block Stockton St., Perth Amboy. Charged with conspiracy, Health Care Claims Fraud, and theft by deception. Arrested 5/15/02; $7,500 cash bail • Humberto Diaz, 300 block Prospect St., South Amboy. Charged with conspiracy, Health Care Claims Fraud, and theft by deception • Francisco Marcelino, 77, 1000 block Wood Ave., Linden. Charged with conspiracy, Health Care Claims Fraud, and theft by deception • Emily M. Nieves, 40, 300 block Prospect St., South Amboy. Charged with conspiracy, Health Care Claims Fraud, and theft by deception ###
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