New Jersey’s Acting Attorney General Peter Harvey announced that an Essex County man was sentenced for his reported role in a large scale, multiple defendant conspiracy to defraud two insurance companies out of more than $600,000.
According to Vaughn McKoy, Acting Director, Division of Criminal Justice and Insurance Fraud Prosecutor Greta Gooden Brown, Timothy Hanjian, 33, of Newark, Essex County was sentenced to five years probation, ordered to pay $9,200 in restitution and to pay a $10,000 civil insurance fraud fine pursuant to the Insurance Fraud Prevention Act.
Insurance Fraud Prosecutor Brown noted that Hanjian was charged by the Division of Criminal Justice – Office of Insurance Fraud Prosecutor via a State Grand Jury indictment on Dec. 18, 2002. The indictment charged Hanjian with conspiracy and theft by deception (3rd degree). At the Feb. 21 guilty plea hearing before Middlesex County Superior Court Judge Frederick DeVesa, Hanjian reportedly admitted that between Oct. 15, 1999 and March 14, 2000, to recruiting four other persons to receive fraudulently issued insurance claim checks totaling $59,200. Hanjian also admitted that he received a fraudulently issued insurance claim check in the amount of $9,200.
As part of the Insurance Fraud Prosecutor’s investigation into the wide-ranging insurance fraud scheme, 44 other persons have been charged, including Carl Prata, 41, West Orange, Essex County, and Carol Cappuccio, 38, Edison, Middlesex County. The Prata and Cappuccio cases are pending. The 42 other defendants have plead guilty to criminal Accusations and their cases have been resolved.
The separate State Grand Jury indictments alleged that Prata, the leader of the conspiracy and a former employee with the Allmerica Insurance Company and the St. Paul Insurance Company, concocted a scheme to access and manipulate the insurance company’s computer systems by inserting information that Cappuccio, Hanjian and at least 45 other individuals had been involved in non-existent automobile accidents over a three-year period from Jan. 1, 1998 to Nov. 28, 2000.
In some instances, the indictment charges that Hanjian recruited other persons to become part of the conspiracy and to have their names and “accident” information fraudulently added to the claims computers in order to receive insurance claim checks.
The Division of Criminal Justice – Office of Insurance Fraud Prosecutor’s investigation determined that the manipulation of the non-existent “accident” information resulted in the insurance company’s computer systems processing and issuing more than 50 fraudulent insurance claim checks to approximately 45 persons totaling more than $600,000.
“This defendant was one of 45 other individuals who coordinated and participated in a massive insurance fraud scheme . It is appalling that these individuals were willing to steal more than $600,000 in insurance claim money from two insurance companies. This investigation continues and each and every participant will be identified, arrested and prosecuted,” said Insurance Fraud Prosecutor Brown.
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