New Jersey Man Gets Three Years in Auto Give Up Scheme

A New Jersey man has been sentenced to three years in prison for lying to police and insurance company and falsely claiming his car was stolen, according to state prosecutors.

James Sgambati, of Parsippany, was also ordered to pay restitution to New Jersey Manufacturers Insurance Co. Sgambati pleaded guilty earlier in August.

He was indicted in April as part of an ongoing investigation into an automobile give up scheme in the Garden State. The scheme’s ringleader, Jose Torres, of Paterson, was previously sentenced to eight years in state prison.

Sgambati admitted that, in 2006, he falsely reported to Paterson police that his 2006 Dodge Charger had been stolen and later obtained $31,466 from New Jersey Manufacturers Insurance Company by filing a false affidavit of vehicle theft.

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Source: New Jersey Attorney General’s Office