ISSUED:3/12/2002
FOR IMMEDIATE RELEASE

68 REPORTEDLY STOLEN VEHICLES WORTH $1.6 MILLION RECOVERED IN 26-MONTH UNDERCOVER INSURANCE FRAUD STING OPERATION; THIRTY INDIVIDUALS CHARGED INCLUDING OWNERS WHO ALLEGEDLY FALSELY REPORTED THAT THEIR CARS HAD BEEN STOLEN IN ORDER TO GET LARGE INSURANCE SETTLEMENTS AND MIDDLEMEN WHO ALLEGEDLY SOLD THE CARS TO UNDERCOVER DETECTIVES POSING AS JUNKYARD DEALERS

New York State Insurance Superintendent Gregory V. Serio, Queens District Attorney Richard A. Brown, and New York City Police Commissioner Raymond W. Kelly today announced today that 30 individuals -- including 24 car owners and six alleged middlemen - have been charged in a $1.6 million undercover insurance fraud "sting" operation that has resulted in the recovery of 68 reportedly stolen vehicles. An additional 13 car owners and two alleged middlemen are being sought. Among those charged are a New York City public school teacher, a Long Island Railroad engineer, a Manhattan registered nurse, a United States Postal Service letter carrier and a Metropolitan Transportation Authority bus operator.

According to the charges, the owners turned over their vehicles to middlemen to get rid of them, filed insurance claims falsely reporting their vehicles as stolen and received settlements of up to $32,000. The middlemen allegedly sold the vehicles to undercover detectives posing as junkyard dealers for up to $1,500.

Superintendent Serio said, "These 30 arrests represent New York States commitment to stop fraudsters from cheating the States honest premium paying auto insurance consumers. This latest crackdown epitomizes the commitment shared by the Insurance Department, the Queens District Attorneys office and the NYPD to continue to work together to put a stop to insurance fraud. The Department will continue to pull out the stops to implement Regulation 68, push for the passage of tough-on-crime felony penalties and work with the law enforcement community to prosecute those who try and game New Yorks insurance system."

District Attorney Brown said, "In recent years we have seen an alarming increase in automobile insurance fraud in the New York metropolitan area -- indeed, throughout the state and across the country. The cost of automobile insurance fraud is enormous -- estimated by the insurance industry at $23 billion dollars nationwide each year -- and is ultimately passed on to the consumer by way of ever increasing insurance premiums. The defendants believed that they could beat the system, but they could not have been more mistaken. Instead of pocketing easy money, they now face serious felony charges and prison sentences."

Police Commissioner Kelly said, "Crimes such as these are costly, not only to insurance companies but also to citizens who often pay dearly for such fraudulent operations."

The arrests are the latest in a series of undercover operations in Queens County targeting auto theft and insurance fraud that began in 1991 conducted by the NYPDs Organized Crime Control Bureau Auto Crime Division and the Queens District Attorneys Organized Crime and Rackets Bureau.

The defendants have been variously charged with Grand Larceny in the Third Degree, Insurance Fraud in the Third Degree, Criminal Possession of Stolen Property in the Third Degree, Unauthorized Use of a Vehicle in the Third Degree, Falsely Reporting an Incident in the Third Degree and Conspiracy in the Fifth Degree. Most face up to seven years in prison, if convicted.

Operation Street Sweep has resulted in the recovery of 68 vehicles, which include expensive, almost new SUVs, costly Japanese imports, a BMW and even a 2000 Suzuki Model 2100 motorcycle. The operation also led to the discovery of a total of 33 false insurance claims that potentially could have cost various insurers, including Allstate, State Farm, and Geico, $700,000 in settlements. The total amount of payoffs by undercover detectives for all 68 vehicles involved in the investigation was about $59,000. Both State Farm Insurance and 1 Beacon Insurance provided funds to aid in the investigation.

Among those charged are:

- New York City public school teacher, Jacquelyn Ingles, 30, who allegedly delivered her 2000 Chevrolet Blazer SUN to a middleman on August 7, 2001. Two days later the middleman sold the vehicle for $1,000 to undercover detectives. Ingles then falsely reported that her car had been stolen at 80th Street and 35th Avenue in Jackson Heights, Queens and thereafter received an $18,875 settlement from Geico Auto Insurance.

- Long Island Railroad engineer, Michael Bakalo, 35, who allegedly delivered his 1997 Oldsmobile Aurora to a middleman on May 5, 2001. Two days later the middleman sold the vehicle for $900 to undercover detectives. Bakalo then falsely reported that his car had been stolen at 94th Street and the Van Wyck Expressway service road in Jamaica, Queens and thereafter received a $15,685 settlement from State Farm Insurance Company.

- Registered nurse at Manhattans New York Presbyterian Hospital Pamela Figueroa, 33, who allegedly delivered her 1999 Honda Civic to a middleman on October 2, 2001. Two days later the middleman sold the vehicle for $900 to undercover detectives. Figueroa then falsely reported her car had been stolen at 90th Street and Atlantic Avenue in Woodhaven, Queens and thereafter received a $15,346 settlement from State Farm Insurance Company.

- United States Postal Service letter carrier Frank Casey, Jr., 26, who allegedly delivered his 1994 Isuzu Rodeo SUV to a middleman on August 22, 2001. A day later the middleman sold the vehicle for $1,000 to undercover detectives. Casey then falsely reported his vehicle had been stolen at 84th Street and 90th Road in Woodhaven, Queens and thereafter received a $7,573 settlement from Geico Insurance Company.

- Metropolitan Transportation Authority bus operator James Petrone, 25, who allegedly delivered his 2000 Mitsubishi Gallant to a middleman on August 30, 2001. Several hours later that same day the middleman sold the vehicle for $1,200 to undercover detectives. Petrone then falsely reported his vehicle had been stolen at Otto Road and 65th Street in Ridgewood, Queens and thereafter received a $18,353 settlement from Allstate Insurance Company.

According to the District Attorney, the investigation began in December 1999, when the NYPD Auto Crime Division set up an undercover automobile buy-back operation on a street corner in Queens Village using detectives posing as junkyard dealers. The detectives had pockets full of marked money, a pager and a cell phone.

District Attorney Brown said, "When word spread that a guy on the street was offering ready cash for cars, the cars started to roll in at a steady rate -- about two or three a month."

By last August, when the investigation had picked up speed, police and prosecutors obtained a court-authorized wiretap on the cell phone one of the principal defendants -- Derek Martinez, 24, an alleged career car thief, who lives in Ozone Park, Queens.

The intercepted conversations provided significant evidence of an ongoing car theft and auto insurance fraud operation as well as information helpful in identifying additional defendants who were alleged associates of Martinez and also acting as middlemen in the massive scheme.

New York is aggressive in its fight against insurance fraud. To report suspected incidents of insurance fraud call 1-888-FRAUD-NY (1-888-372-8369).

It should be noted that criminal charges are merely accusations and that defendants are presumed innocent until proven guilty.

Defendant Information:

Car Owners:

1-Obinnaya Agoha, 32, 175 Willoughby St., Brooklyn;

2-Juan Amador, 26, 350 137th Street, the Bronx;

3-Michael Bakalo, 35, 23 Eugene Street, Melville, New York;

4-Frank Casey, Jr., 26, 198 Merrits Road, Farmingdale, New York;

5-Patrizia Castelli, 38, 78-49 81st Street, Glendale, Queens;

6-Rafael Corona, 33, 546 Brace Avenue, Perth Amboy, New Jersey;

7-Juaquin Delausa, 37, 12 Kingston Drive, Spring Valley, New York;

8-Lugina DeToma, 30, 132-07 83rd Street, Ozone Park, Queens;

9-John Devito, 32, 65-24 162nd Street, Flushing, Queens;

10-Pamela Figueroa, 33, 3 Hilltop Terrace, Nanuet, New York;

11-Louisa Gangidino, 29, 3505 Riverside Drive, Oceanside, New York;

12-Marisol Garcia, 27, 64-45 Booth Street, Rego Park, Queens;

13-Melaine Goldman, 27, 107-14 91st Street, Ozone Park, Queens;

14-Amy Hemley, 25, 101-22 84th Street, Ozone Park, Queens;

15-Jaquelyn Ingles, 30, 55 Anderson Avenue, North Babylon, New York;

16-Eileen Koslowsky, 51, 67-34 136th Street, Flushing, Queens;

17-Marie Lavoranda, 71, 183 Wright Avenue, Deer Park, New York;

18-Victoria Lukasiewisz, 30, 416 Woodward Ave., Ridgewood, New York;

19-Dawn Morris , 26, 1966 First Avenue, New York, New York;

20-James Petrone, 25, 310 Buchanan Avenue, Mineola, New York;

21-Nikola Pjetri, 51, 43-22 45th Street, Long Island City, Queens;

22-Joseph Rivera, 25, 86-02 Park Lane South, Woodhaven, Queens;

23-Sandra Rodriguez, 29, 913 Washington Ave., Elizabeth, New Jersey and

24-Scott Wallace, 35, 53 Emerson Avenue, Baldwin, New York.

Alleged Middlemen Charged:

1-Hector Burges, 29, currently incarcerated;

2-Ojie Ferguson, 28, 105 McKinley Avenue, Brooklyn.

3-Daniel Hernandez, 29, 97-12 78th Street, Ozone Park;

4-Derek Martinez, 24, 95-04 77th Street, South Ozone Park;

5-Joseph Murray, 21, 94-49 115th Street, Richmond Hill and

6-Hector Portalatin, 33, 54 Lincoln Avenue, Brooklyn.