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For Immediate Release:
For Further Information:
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October 29, 2010

Office of The Attorney General
- Paula T. Dow, Attorney General
Division of Criminal Justice
- Stephen J. Taylor, Director
Office of the Insurance Fraud Prosecutor
- Riza Dagli, Acting Insurance Fraud Prosecutor

Media Inquiries-
609-292-4791
Citizen Inquiries-
609-292-4925

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Morris County Resident Sentenced to State Prison in Auto “Give Up” Scheme

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TRENTON - Attorney General Paula T. Dow and Criminal Justice Director Stephen J. Taylor announced that a Morris County man was sentenced to state prison today for falsely reporting that his car had been stolen.

According to Acting Insurance Fraud Prosecutor Riza Dagli, James Sgambati, 31, of Parsippany, was sentenced to three years in state prison and was ordered to pay restitution to New Jersey Manufacturers by Superior Court Judge David H. Ironson in Morris County. The sentence was based on Sgambati’s guilty plea to third-degree insurance fraud, a charge contained in an April 28 Morris County grand jury indictment.

The indictment stemmed from an ongoing investigation into an automobile “give up” scheme. The leader of the scheme, Jose Torres, 37, of Paterson, was previously sentenced to eight years in state prison, with five years of parole ineligibility.

In pleading guilty on Aug. 4, Sgambati admitted that between Sept. 12 and Oct. 25, 2006, he falsely reported to the Paterson Police Department that his 2006 Dodge Charger had been stolen. An investigation by the Office of the Insurance Fraud Prosecutor determined that Sgambati subsequently obtained $31,466 from New Jersey Manufacturers Insurance Company by filing a false affidavit of vehicle theft.

Lieutenant Vincent Gaeta, Analyst Kathleen Ratliff, and former Deputy Attorney General John J. Higgins were assigned to the investigation. Deputy Attorney General Cheryl A. Maccaroni represented the Office of the Insurance Fraud Prosecutor at the sentencing. Acting Insurance Fraud Prosecutor Dagli thanked the Mercury Insurance Group, New Jersey Manufacturers Insurance Company, Allstate Insurance Company and State Farm Insurance Company for their assistance in this investigation.

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