View this article online: https://www.claimsjournal.com/news/east/2016/12/27/275806.htm

Pennsylvania School Transit Company, Owner Charged With Insurance Fraud

A school transit contractor with a $2.4 million contract to provide rides to some Pittsburgh, Pa., charter school students has been charged with failing to properly insure some vehicles and hiring drivers with criminal records by ignoring state-mandated background checks.

Martin Betchy, 35, didn’t immediately return a call for comment after the state attorney general announced the charges Wednesday against Betchy and his company, Three Rivers Transit LLC, in McKeesport. Betchy’s home phone was disconnected.

Betchy is scheduled to surrender for arraignment Thursday on charges including deceptive business practices, theft by deception, insurance fraud and child endangerment, the attorney general said.

Betchy’s company has a contract with Propel Schools, a network of charter schools. A spokeswoman there did not immediately respond to a phone call and email for comment.

According to a criminal complaint, some Three Rivers Transit vehicles were insured with personal policies, not commercial policies, which meant passengers got stuck paying bills if they were injured in crashes. The lack of background checks allegedly led to drivers having criminal records and, sometimes, invalid driver’s licenses, state investigators charged.

Attorney General Bruce Beemer stressed that the investigation is ongoing.

A 9-year-old child suffered a concussion when one of Betchy’s drivers caused a multi-vehicle crash in January 2015. The child’s mother wound up having to file a claim with her auto insurance to cover the child’s medical expenses, because the transit vehicle wasn’t properly insured, investigators said.

Betchy’s drivers included one with a record for robbery and aggravated assault, and another for identity theft and burglary, according to the complaint. Beemer said many drivers had arrest records for drug possession or driving under the influence, leaving them without valid driver’s licenses.

Betchy’s contract with Propel Schools began in January 2012.