N.J. Man Pleads Guilty in Auto Scam

September 16, 2004

New Jersey’s Division of Criminal Justice – Office of the Insurance Fraud Prosecutor announced that an Essex County man has pleaded guilty to attempted theft by deception for attempting to defraud State Farm Insurance Company out of more than $6,500 as part of a phony accident scheme.

According to Vaughn McKoy, director, Division of Criminal Justice and Insurance Fraud Prosecutor Greta Gooden Brown, Roy Bailey, 34, of Newark, pleaded guilty before Essex County Superior Court Judge Michael Ravin to third degree charges of conspiracy and attempted theft by deception.

A third degree crime carries a sentence of up to five years in state prison and a fine of up to $15,000. Bailey may also face civil insurance fraud fines pursuant to the civil Insurance Fraud Prevention Act. Bailey is scheduled to appear before Judge Ravin on Oct. 22 for sentencing.

Gooden Brown noted that Baily, along with co-defendant Irene Smith, 28, Western Parkway, Irvington, were charged via an Essex County Grand Jury indictment returned on Sept. 30, 2002. Smith plead guilty to third degree conspiracy on Jan. 10, 2003 and was sentenced by Essex County Superior Court Judge Peter Vazquez on March 7, 2003 to two years probation and ordered to perform 100 hours of community service.

In pleading guilty on Sept. 3, Bailey reportedly admitted that in February, 1997, he, Smith and a third co-conspirator, Ali Harvey, claimed to have been injured in a motor vehicle accident. Investigation by the Division of Criminal Justice – Office of the Insurance Fraud Prosecutor determined that the accident never occurred.

Bailey subsequently filed fraudulent bodily injury and PIP claims totaling more than $6,500 with the State Farm Insurance Company. State Farm denied the claims and referred the case to the Office of the Insurance Fraud Prosecutor for investigation.

On June 4, Harvey pleaded guilty to a criminal Accusation that charged third degree conspiracy for his role in the phony accident scheme. Harvey was admitted to the Pre-Trial Intervention Program (PTI) and was ordered to complete 50 hours of community service.

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