Pennsauken Car Salesman Pleads Guilty in Car Insurance Fraud Scheme

A Camden County car salesman pleaded guilty to defrauding two insurance companies of more than $130,000 by reporting luxury vehicles stolen, even though he knew that the vehicles had been shipped to China, Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor (OIFP) announced on Monday.

Steven Shore, 58, of Pennsauken, pleaded guilty to two counts of second-degree insurance fraud and second-degree conspiracy. The state will recommend a prison sentence of seven years, and that he pay restitution in the amount of $68,220.

Sentencing is scheduled for Dec. 5.

Shore admitted he stole $68,220 from Liberty Mutual Insurance Company by creating the false impression that a black 2013 Porsche Cayenne was stolen.

An investigation determined that Shore purchased the Porsche on Oct. 3, 2012 and purchased an insurance policy for the vehicle the next day.

On Nov. 28, 2012, Shore notified the Pennsauken Police Department that the Porsche had been stolen from outside his residence and subsequently filed a claim with Liberty Mutual Insurance Company.

On Dec. 17, 2012, Liberty Mutual paid Shore $68,220, after the car was declared a total loss.

An investigation determined that Shore had shipped the Porsche, or caused the Porsche to be shipped, to China in October 2012 as part of a “grey market” automobile exporting scheme.

Although the demand for luxury vehicles in the United States is high, the current demand in Asian markets is much higher, Hoffman said.

A new Porsche, for example, can be bought at a dealership in America for approximately $50,000 and sold in China for more than $140,000.

Additionally, Shore and Michele Yorgan, 43, of Cherry Hill, attempted to steal $63,457 from Travelers Insurance Company by creating the false impression that a different black 2013 Porsche Cayenne, purportedly belonging to Yorgan, had been stolen.

Shore recruited Yorgan to file a fraudulent claim with Travelers Insurance Company, reporting that her car was stolen.

Shore and Yorgan falsely claimed that Shore had sold the vehicle to Yorgan for $65,000 on March 20, 2013.

That day, Yorgan allegedly added the vehicle to her insurance policy, even though she was not in possession of the vehicle.

On April 11, 2013, Yorgan falsely notified Travelers Insurance Company that “her” Porsche had been stolen the previous day.

An investigation determined that Shore did not sell the vehicle to Yorgan on March 20, but actually shipped, or caused to be shipped, the Porsche to China in October 2012.

Travelers Insurance denied the claim and referred the matter to the Office of the Insurance Fraud Prosecutor.

Last month, Yorgan pleaded guilty to second-degree insurance fraud, second-degree conspiracy, third-degree attempted theft by deception and fourth-degree falsifying or tampering with records.

Her sentencing is scheduled for Oct. 31.