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For Immediate Release:  
For Further Information:
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March 29, 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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New York Man Pleads Guilty to Racketeering for His Role in Multi-state Auto Theft Network

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TRENTON - Attorney General Stuart Rabner and Criminal Justice Director Gregory A. Paw announced that a New York man pleaded guilty today for his role in an auto theft ring responsible for thefts of more than $3 million worth of vehicles.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Waldemar Kondzielewski, 29, of Staten Island, N.Y., pleaded guilty before Superior Court Judge John S. Triarsi in Union County to a criminal accusation which charged him with second-degree conspiracy to commit racketeering and second-degree racketeering.

At the guilty plea hearing, Kondzielewski admitted that he was a member of an organized enterprise that used fraudulently obtained key codes to steal cars programmed with an electronic code for unlocking and starting. The stolen cars were re-tagged and sold, frequently on eBay. A re-tagged or re-plated vehicle is a vehicle which has had its original vehicle identification number plate removed and replaced with a VIN from another vehicle, usually one that has been damaged in an accident and is a salvage vehicle. It is believed that more than 150 stolen vehicles worth more than $3 million were stolen, re-tagged, and sold by this ring.

“Through this multi-jurisdictional investigation, we have dismantled a major criminal enterprise responsible for millions of dollars in stolen cars,” said Attorney General Rabner. “We will continue to work with our law enforcement partners in Pennsylvania and New York to bring those involved to justice.”

This is the fourth guilty plea taken by the Office of Insurance Fraud Prosecutor during the past two months from individuals responsible for the auto theft ring. On March 23, Superior Court Judge Scott J. Moynihan of Union County sentenced the leader of the ring, Dariusz Grabowski, also known as Derek Grabowski, 37, of Lake Ariel, Pa., to 20 years in state prison, with eight years parole ineligibility, and sentenced his brother Krzysztof Grabowski, 26, of Lake Ariel, to 15 years in prison, with seven years parole ineligibility. Both men pleaded guilty on Feb. 8. A third Pennsylvania man, Patrick Gutorski, 32, of Lake Ariel, pleaded guilty on Feb. 21 to second-degree charges of conspiracy to commit racketeering and racketeering. He is scheduled to be sentenced on April 5.

Kondzielewski is scheduled to be sentenced on May 18 before Judge Moynihan. Crimes of the second degree carry a sentence of up to 10 years in state prison and a criminal fine of up to $150,000. Kondzielewski also may face civil insurance fraud fines.

The Division of Criminal Justice - Office of Insurance Fraud Prosecutor participated in this multi-jurisdictional investigation with the New Jersey State Police, the Pennsylvania State Police and the New York Attorney General’s Office.

“Frequently insurance fraud investigations lead to evidence of stolen automobiles and alteration of vehicle identification numbers,” said Insurance Fraud Prosecutor Brown. “This particular investigation uncovered a large auto theft ring. Our investigation is ongoing and charges against additional persons are likely.”

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 Philip J. Mogavero and Jacqueline Smith coordinated the investigation. Smith represented the Office of Insurance Fraud Prosecutor at the guilty plea hearing. New Jersey State Police Detective Joseph Salokas and National Insurance Crime Bureau Agent Donald Cavallo also assisted in the investigation.

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 1-877-55-FRAUD or visiting the Web site www.NJInsuranceFraud.org. State regulations permit an award to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.

The Office of Insurance Fraud Prosecutor was established by the Automobile Insurance Cost Reduction Act of 1998. The office is the centralized state agency that investigates and prosecutes both civil and criminal insurance fraud, as well as Medicaid fraud.

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