3 Long Islanders Charged in 'Crash and Buy' Insurance Schemes: Attorney General

Three Long Island residents are among six New Yorkers accused of taking part in "crash and buy" schemes in which they purchased car insurance after their vehicles had already sustained damage and then falsified the dates in insurance claims, New York Attorney General Eric Schneiderman said Thursday.

The charges are the result of “Operation Crash & Buy,” a proactive investigation initiated by the Attorney General’s Auto Insurance Fraud Unit (AIFU) in conjunction with the New York State Department of Financial Service’s Criminal Investigations Unit, Insurance Frauds Bureau and the National Insurance Crime Bureau, Schneiderman said.

The following Long Island residents were arrested on Wednesday:

• Jacqueline Cadeau, 26, of Hempstead, who was involved in an accident in her 2012 Honda Civic on March 22, 2015, purchased comprehensive and collision coverage in April 2015 and then submitted a claim stating that the damage had occurred on April 21, 2015, Schneiderman said. Cadeau is charged with one count of first-degree falsifying business records, a class E felony, and one count of fifth-degree insurance fraud, a class A misdemeanor.
• Shimon Schmulian, 25, of Great Neck, who damaged his 2014 BMW after hitting a pothole in February 2014, thereafter changed his deductible from $1,000 to $500, and then submitted a claim in which he stated that the damage occurred the following day, Schneiderman said. Schmulian is charged with one count of first-degree falsifying business records, a class E felony, and one count of fifth-degree insurance fraud, a class A misdemeanor.
• Debra Spraggins, 44, of Selden, who added comprehensive coverage to her 2005 Dodge Neon in August 2014 after it sustained water damage, and then made a claim for more than $2,900 in which she stated her car was flooded five days after the policy effective date, Schneiderman said. Spraggins is charged with one count of first-degree falsifying business records and one count of fourth-degree insurance fraud, both class E felonies.

“Scams like those allegedly uncovered by this joint investigation needlessly drive up auto insurance premiums for innocent New Yorkers,” said Maria Vullo, the state's superintendent of financial services. “This case should serve as a warning that unscrupulous individuals attempting to game the system will be caught and prosecuted.”

Photo via Flickr/CreativeCommons/CharlesWagner