Police Crackdown on Motor Vehicle Insurance Fraud

Lawrence Police arrested three men and two women on Thursday, as part of a major investigation and crackdown on insurance fraud in the city.

In partnership with investigators from the Insurance Fraud Bureau of Massachusetts, Lawrence Police arrested the five suspects, all residents of Lawrence, and charged them with fraudulent motor vehicle claims and attempting to commit a crime: Jose Munoz, 44; Juan Antonio Morales, 51; Paul Delacruz, 27; Katherine Maldonado, 30; and Anne Sanchez, 25.

“We have a strong working partnership with the Insurance Fraud Bureau, allowing the Lawrence Police Department to successfully investigate allegations of fraud and bring these five individuals to face justice,” said Lawrence Police Chief James X. Fitzpatrick said. “Insurance fraud is not a victimless crime by any stretch of the imagination. Fraudulent claims result in higher insurance premiums for the rest of us, and the perpetrators could be seriously hurt or killed in the process of staging dangerous motor vehicle accidents.”

Munoz was arrested on March 2 for filing a false insurance claim. Munoz claimed that his vehicle was damaged while parked outside his residence. Investigators found the damage was caused while the vehicle was in motion, casting doubt on his story.

Maldonado was arrested on June 16 for filing a false claim with Hanover Insurance that her vehicle was involved in a hit and run accident. Forensics experts concluded the damaged was caused by a fixed object while the vehicle was in motion.

Sanchez and Morales were also arrested on June 16 for filing false claims that her vehicle was damaged while parked in front of her residence, and also that her vehicle was stolen. Arbella Insurance denied both claims and hired forensic experts who determined both claims to be false. Morales was arrested for filing a false claim that her vehicle was involved in a hit and run accident. Forensic experts determined the damage to be caused by two separate impacts in one event, most likely from a chain link fence rather than another vehicle.

Delacruz was arrested on June 17 for filing a false insurance claim with Metlife Insurance. Delacruz reported his vehicle was involved in a hit and run accident, but investigators found evidence that indicated the damage was caused by a vehicle in motion rather than parked.

The cases were referred to the Essex District Attorney’s Office for prosecution.