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TRENTON
- Attorney General Anne Milgram and Criminal
Justice Director Gregory A. Paw announced
that an Old Bridge man and his firm have
pleaded guilty in a car “give up”
scam.
According
to Insurance Fraud Prosecutor Greta Gooden
Brown, Stephen J. Pielli, 46, of Old Bridge,
pleaded guilty yesterday before Superior
Court Judge Frederick DeVesa in Middlesex
County to third-degree insurance fraud.
Pielli’s landscaping corporation,
General Green Inc., with a business location
on Hawkins Road in Old Bridge, pleaded guilty
to second-degree insurance fraud.
Pielli admitted that as part of a “give
up” scam between Feb. 28 and Sept.
13, 2006, he submitted a phony auto theft
claim to an insurance company involving
a car he leased through his corporation,
General Green. Pielli admitted that he falsely
reported to the Old Bridge Police Department
and High Point Safety and Insurance Management
Company that the 2005 Mercedes Benz SL500
had been stolen from the driveway of his
home. In fact, the car had not been stolen.
Pielli subsequently sued High Point for
insurance claims money, even though the
claim he submitted was false. An owner initiated
“give up” occurs when the owner
voluntarily gives up his car to another
so that it can be chopped for parts or retagged
with a different vehicle identification
number and sold, and so that a phony insurance
claim can be submitted.
This case was referred to the Office of
Insurance Fraud Prosecutor by the Special
Investigative Unit of High Point Safety
and Insurance Management Corporation, which
initially uncovered the fraud. Prosecutor
Brown thanked High Point for their assistance
in this matter.
State
Investigator Amy Carson, Civil Investigator
William Frey and Deputy Attorney General
Carol Stanton Meier were assigned to the
investigation. Meier represented the Office
of Insurance Fraud Prosecutor at the guilty
plea hearing.
“Phony
insurance claims resulting from automobile
give-up schemes remain a priority for the
Office of Insurance Fraud Prosecutor,”
said Prosecutor Brown. “It is clear
that too many people are willing to lie
to an insurance company and claim their
car was stolen in order to avoid a repair
bill or expensive end-of-lease payments.”
Second-degree
crimes carry a maximum criminal fine of
$150,000. Third-degree crimes carry a maximum
punishment of five years in state prison
and a criminal fine of $15,000. Pielli and
his company may also face civil insurance
fraud fines. Sentencing is scheduled for
Feb. 29.
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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