N.Y. Lawyer Convicted in Scheme to Defraud Auto Insurers

October 3, 2005

New York Attorney General Eliot Spitzer announced the conviction of a Nassau County personal injury attorney and his law firm for reportedly offering false instruments for filing and for scheming to defraud insurance companies under New York State’s No-Fault Insurance Law, which provides for payment to people injured in motor vehicle accidents.

Daivery Taylor, 37, of Freeport, and his law firm, Silverman & Taylor, were found guilty after a two-week trial before Nassau County Court Judge Jeffrey Brown. Sentencing is set for November.

Evidence at the trial established that Taylor paid “steerers” to solicit individuals involved in automobile accidents and to refer the victims to medical clinics. These steerers also prompted the accident victims to retain Taylor and his firm by promising the victims large cash settlements from the filing of personal injury suits.

Once the “steerers” convinced the accident victims to sign retainer agreements with Silverman & Taylor, the defendant submitted retainer statements to the New York State Office of Court Administration. These retainer statements contained false information and concealed the fact that the accident victims had been illegally referred by the “steerers.”

Spitzer thanked the New York City Health and Hospitals Corporation Inspector General, the New York City Department of Investigation, the National Insurance Crime Bureau, Allstate Insurance Company, Clarendon Insurance Company, Eagle Insurance Company, Progressive Insurance Company, Travelers Insurance Company, Merchants Insurance Company, New York Central Mutual Fire Insurance Company, and State Farm Insurance Company for their assistance in the investigation.

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