Hugh T. Farley

May 08, 2014

State Senator Hugh T. Farley (R, C, I – Schenectady) reported the New York State Senate passed legislation to crack down on criminals and scam artists who commit auto insurance fraud that costs New Yorkers billion of dollars in higher insurance premiums, and has caused serious injuries and death to innocent victims.

The bills would significantly reduce auto insurance scams by increasing penalties for those who commit or assist in the fraud.

It has been almost 11 years since the tragic death of Alice Ross, a 71-year-old wife and grandmother who was killed as the result of a fraud-related, staged auto accident in Queens. One of the criminals drove into her car, causing her to lose control of her vehicle, strike a tree and die.

The Senate today passed “Alice’s Law,” (S3547) that would make it a crime to stage a motor vehicle accident with intent to commit insurance fraud. This felony crime would be punishable by up to seven years in prison.

The Senate also approved a bill (S3033) that makes it illegal to act as a “runner” who steers accident victims towards crooked doctors who bill Medicaid for unnecessary medical treatments. Runners are key members of auto fraud rings. Under this bill, they could get four years in prison.

Auto insurance fraud is an ongoing crime, with frequent news reports of small and large-scale scam operations that rip-off businesses, consumers and taxpayers. Fraud is a key reason why New Yorkers pay over 50 percent more for auto insurance premiums than drivers in other states.

Three months ago, Maxo Jean of West Hempstead was convicted of staging more than 30 fake car crashes to steal $150,000 in no-fault insurance money. Jean organized crash rings and set up fake accident “victims” to go to corrupt medical cl-Your data has been truncated.