Massachusetts Insurance Agent Charged in Stolen Identity Scheme

April 16, 2010

A Massachusetts insurance agent has been arraigned in connection with allegedly stealing information from Massachusetts driver’s licenses and using that information to create fraudulent commercial auto insurance policies for individuals who could not lawfully obtain those policies.

Virgin Lima, of Milford, was arraigned this week on five counts of motor vehicle insurance fraud and a number of related charges. Also indicted in the case was Wanderson Silva, of Malden.

Authorities allege that Silva, a car salesman at a dealer in Somerville, orchestrated meetings with unlicensed individuals and Lima, a licensed insurance agent at Brighton Insurance Co. Authorities allege that these meetings resulted in several fraudulent commercial motor vehicle insurance policies. In order to obtain a private motor vehicle insurance policy in Massachusetts, the Division of Insurance and Massachusetts law requires all foreign operators to have a valid Massachusetts license if they have been in the United States for more than one year. Investigators discovered that Silva’s customers had been in the United States for more than one year and did not have valid Massachusetts licenses. Therefore, these customers could not lawfully register their vehicles and obtain motor vehicle insurance policies.

Authorities allege that Silva promised all of his customers’ insurance policies if they bought their vehicles from his dealership. In order for Silva to obtain insurance on these vehicles without the customers having valid driver’s licenses, Silva allegedly enlisted the help of Lima. Investigators discovered that Silva would bring his customers to Lima, use the valid licenses of unsuspecting former customers, and then she would use her work computer to create fraudulent commercial motor vehicle insurance policies for Silva’s clients listing them as drivers. Authorities allege that both Silva and Lima accepted payment from these clients in order to create the fraudulent policies.

IFB investigators discovered that Lima allegedly created 12 fraudulent commercial auto policies during the period of January 2006 through January 2008. In order to accomplish this, authorities allege that Silva created fictitious company names to obtain the policies and insure the vehicles of his clients. Silva’s customers did not have licenses nor did they have their own businesses. Since a licensed individual must be listed as the driver for the commercial company, Silva allegedly stole personal information from previous customers who had valid Massachusetts licenses without their consent. Authorities believe that these valid drivers were listed as the operators associated with the fictitious companies, and that they did not know they were listed as the owners of these policies or that these policies ever existed.

Both defendants have pleaded not guilty.


Source: Massachusetts Attorney General’s Office

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