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For Immediate Release:  
For Further Information:
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February 8, 2007  

Division of Criminal Justice
609-292-4791

Office of The Attorney General
- Stuart Rabner, Attorney General
Division of Criminal Justice
- Gregory A. Paw, Director

Office of the Insurance Fraud Prosecutor
- Greta Gooden Brown, Insurance Fraud Prosecutor

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Pennsylvania Man Pleads Guilty to Leading $3 Million, Multi-state Auto Theft Network
Co-defendant, his Brother, Pleads Guilty for His Role in Theft Ring

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TRENTON - Attorney General Stuart Rabner and Criminal Justice Director Gregory A. Paw announced that two Pennsylvania men have pleaded guilty for their roles in an auto theft ring responsible for thefts of more than $3 million worth of vehicles.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Dariusz Grabowski, also known as Derek Grabowski, 37, Lake Ariel, Pennsylvania, pleaded guilty today before Superior Court Judge Scott J. Moynihan in Union County to a criminal accusation which charged him with second-degree leader of organized crime, second-degree conspiracy to commit racketeering and second-degree racketeering.

In addition, Grabowski’s brother, Krzysztof Grabowski, 26, of Lake Ariel, pleaded guilty to a criminal accusation charging him with second-degree conspiracy to commit racketeering, second-degree racketeering and third-degree alteration of a vehicle identification number.

A multi-agency investigation into the criminal network revealed that more than 150 vehicles with a total value in excess of $3 million were stolen, re-tagged and sold by Dariusz Grabowski and other members of the criminal enterprise he admitted to leading.

“This is an outstanding example of law enforcement collaboration to dismantle a major auto theft ring that was operating across state lines,” said Attorney General Rabner. “Our Office of Insurance Fraud Prosecutor worked on this multi-jurisdictional investigation with the New Jersey State Police, the Pennsylvania State Police, the New York Attorney General’s Office and the National Insurance Crime Bureau.”

At the guilty plea hearing, Dariusz Grabowski admitted that between March 2003 and November 2005, he was the leader of an organized enterprise that stole cars, re-tagged them using counterfeit and salvaged titles, and sold them, frequently on the Internet through eBay.

A re-tagged or re-plated vehicle is a vehicle which has had its original vehicle identification number plate removed so that a VIN from another vehicle, usually a vehicle which has been damaged in an accident and which is a salvage vehicle, can be affixed to the stolen vehicle to disguise that it was stolen.

Dariusz Grabowski admitted that he falsely portrayed himself as a locksmith licensed in New York to obtain automobile key codes from a company known as Key Code Express located in Florida. A key code is a code used in connection with the manufacture of certain automobile keys which enables only the key with the proper code to unlock and start a specific vehicle.

Fraud Prosecutor Brown noted that Dariusz Grabowski admitted he falsely obtained more than 130 key codes from Key Code Express in Florida, as well as 36 key codes from the Jameson Code Service and six key codes from the Key Quest Inc. key service. He obtained the key codes so that other members of the enterprise could steal vehicles, frequently from automobile dealerships, and so that the stolen vehicles could be re-tagged and sold on eBay. He admitted that he was involved in the sale of at least 42 stolen vehicles utilizing eBay.

Krzysztof Grabowski admitted that, as a member of this enterprise, he obtained counterfeit vehicle tags and titles.

Dariusz Grabowski was previously charged in an indictment on January 12, 2006, with receiving stolen property. This indictment pertained to stolen cars which were located at or around his residence in Pennsylvania between Oct. 28 and Nov. 2, 2005, when search warrant and arrest warrants were executed by investigators from the Office of the Insurance Fraud Prosecutor involving various members of the enterprise. That indictment was assigned to Somerset County and will be disposed of when he is sentenced.

State Investigators Jarek Pyrzanowski, Jeffrey Lorman, Joseph Luccarelli, and Kelly Howard, Civil Investigator Gary Miller, Analysts Paula Carter and Barbara Ziolkowski and Deputy Attorneys General Jacqueline Smith and Philip J. Mogavero coordinated the investigations. Mogavero represented the Office of Insurance Fraud Prosecutor at the guilty plea hearing. Also assisting in the investigation were New Jersey State Police Detective Joseph Salokas and National Insurance Crime Bureau Agent Donald Cavallo.

Crimes of the second degree carry sentences of up to 10 years in state prison and a criminal fine of up to $150,000, while third-degree crimes carry a sentence of up to five years in state prison and a fine of up to $15,000. The defendants also may face civil insurance fraud fines.

Prosecutor Brown noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.NJInsuranceFraud.org .” State regulations permit that an award to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.

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