TRENTON - Attorney General Jeffrey S. Chiesa
announced that a Brooklyn limousine/taxi
company owner/manager has been charged in
a state grand jury indictment for allegedly
registering and insuring limousines and
taxis in New Jersey under false pretenses
in order to obtain lower insurance premiums.
Moustapha Lo, 43, of Brooklyn, New York,
was charged yesterday (March 20) with second-degree
insurance fraud, three counts of third-degree
theft by deception and three counts of third-degree
theft by failure to make required disposition
of property received.
At the time of the alleged crime, Lo was
the owner/manager and registered agent of
Safe & Fare Transportation Inc. (Safe
& Fare), located in Newton. The company
has an alternate or associated name of Futa
Transportation (Futa) with the same address
as Safe & Fare. Lo was also the owner/manager
and registered agent of Allo Taxi Limited
Liability Company (Allo), also located in
Newton, New Jersey.
The state grand jury indictment alleges
that between Oct. 31, 2007, and Jan. 28,
2008, Lo made fraudulent or misleading statements
in initial commercial auto insurance policy
applications and in at least five separate
insurance policy change request forms by
providing false information to a producer
or broker associated with Progressive/National
Continental Insurance Company. It is alleged
that Lo fraudulently claimed that the vehicles
he registered under his New Jersey corporations
were garaged and operated in Newton, Sussex
County, New Jersey, when in fact, they were
garaged and operated in New York. It is
alleged that, as a result, Lo fraudulently
obtained lower premium rate payments to
which he was not entitled.
The indictment also alleges that Lo fraudulently
obtained $17,537 in premium money from a
customer and made the false impression that
monthly cash payments paid to his company,
Futa, were forwarded to Allstate New Jersey
Insurance Company as payments for the customer’s
2000 Lincoln Town Car. It is alleged that
in the same manner, he fraudulently obtained
premium payments of $16,300 from a second
customer paid to his company, Safe &
Fare, which were to be forwarded to National
Continental Insurance Company for the customer=s
1999 Toyota Sienna, as well as fraudulently
obtaining $14,400 in premium payments from
a third customer, which were paid to Safe
& Fare and were to be forwarded to Lincoln
General Insurance Company for the customer=s
1997 Chevrolet Astro. It is alleged that,
in all three instances, Lo allowed the three
automobile policies to lapse for non-payment
and kept the cash payments for himself.
The indictment is merely an accusation
and the defendant is presumed innocent until
proven guilty. Second-degree crimes carry
a maximum punishment of 10 years in state
prison and a criminal fine of $150,000,
while third-degree crimes carry a maximum
punishment of five years in state prison
and a criminal fine of $15,000.
Deputy Attorney General Carlos A. López
and Detective Scott Stevens were assigned
to the investigation. Lopez presented the
case to the state grand jury. Acting Insurance
Fraud Prosecutor Ronald Chillemi thanked
Peter Carr, SIU Special Investigator, CAIP
Claims of Progressive/National Continental
for his assistance in the investigation.
The case was referred to the Office of the
Insurance Fraud Prosecutor by NJ Commercial
Assigned Risk Plan.
