New York Fraud Cases Results in 708 Arrests, $20 Million In Restitution


Albany, NY  (CompNewsNetwork) - Insurance and health-care related fraud led to 708 arrests in 2007, a 17 percent increase over the previous year, the New York State Insurance Department said in a newly released report.

The illegal use of the Internet to sell $6 million in steroids and human growth hormones, which led to the arrests of 24 suspects, is an example of the complex insurance fraud schemes investigated by the Department's Frauds Bureau, along with local authorities.

"The Insurance Department intends to continue its aggressive efforts to crack down on insurance and health care-related fraud. These activities are illegal and hurt all honest New Yorkers by needlessly driving up the cost of health, auto, property and many other forms of insurance," said Steven Nachman, Deputy Superintendent for Fraud and Consumer Services.

The report noted:

Court-ordered restitution of $20 million stemming from convictions against 147 people in 2007.

The arrests of 149 people for workers' compensation fraud, including 89 people arrested for fraudulently taking benefits while secretly working second jobs.

A total of 1,072 new cases opened for investigation by the Bureau.
The Bureau reported that most insurance fraud cases are now tracked electronically by means of a web-based case management system that became fully operational in 2007. The system allows insurers to electronically transmit suspected fraud reports to the Bureau and allows Bureau personnel to track investigative tasks and events from initial assignment through closure.

The complete report may be accessed on the Department's website,

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