Gallagher Announces Arrests of 10 in Staged Crash Ring
CONTACT: Nina Banister
MIAMI—Florida's Chief Financial Officer Tom Gallagher today announced the arrests of 10 people in a staged accident ring that involved 15 different medical clinics fraudulently billing auto insurers more than a million dollars for non-existent injuries. The arrests are part of an ongoing crackdown by the Department of Financial Services, Division of Insurance Fraud, to fight Personal Injury Protection insurance fraud, also known as PIP fraud.
Those arrested today are facing a range of felony charges from grand theft to organized fraud. Some of the suspects already have extensive criminal records. The National Insurance Crime Bureau assisted in the three-month investigation, and Miami-Dade Police Robbery Intervention Detail units assisted with the arrests.
"It appears the potential for profits has lured the underbelly of the criminal world into the PIP fraud arena," said CFO Gallagher, who oversees the department. "I am proud of the work of our investigators to bring these people to justice, and we'll continue to aggressively pursue scam artists who set up these schemes."
Three of the participants in this ring were charged under a new law that became effective October 1, 2003, and face a minimum two-year prison sentence and could be sentenced up to 15 years in prison under the new sanctions.
The suspected ringleader, Joaquin Noda Bellma, was arrested today on 21 counts of insurance fraud, 21 counts of grand theft and three counts of organized scheme to defraud in the first degree. Noda Bellma has prior arrests for burglary, home invasion, vehicle theft and drugs and has served time in prison under different names. Nine others, ranging in age from 20 to 64, are charged with participating in the staged accidents.
Gallagher said the division is investigating more than a dozen staged accidents suspected of being related to this ring, and more arrests are anticipated.
"In the last five years alone, we've made nearly 1,000 PIP fraud-related arrests that add up to more than $27 million in fraudulent billings," said Gallagher. "These crimes drain our economy and raise costs for all Floridians."
Florida drivers are required to carry a minimum of $10,000 in PIP coverage in addition to a minimum of $10,000 in property damage liability coverage. In staged accidents, the planners and organizers, usually in connection with unscrupulous clinic owners, target the PIP insurance of drivers and bill an average of $10,000 to each participant's auto insurance company.
This ring has been connected with staged accidents on October 12, 2002 that resulted in fraudulent claims totaling $562,193 ($33,598 paid); January 2, 2003 that resulted in fraudulent claims totaling $402,002 ($38,002 paid); July 3, 2003 that resulted in fraudulent claims totaling $81,995 ($62,803 paid); August 25, 2004, that resulted in fraudulent claims totaling $55,949 ($23,230 paid); and March 21, 2005, that resulted in fraudulent claims totaling $25,553.
The insurance companies who were billed are Direct General, the Florida Automobile Joint Underwriters Association, Republic Western, and State Farm.
To help combat PIP fraud, the division entered into a partnership with the Florida Automobile Joint Underwriting Association and the Miami-Dade State Attorney's office and hired a dedicated PIP fraud prosecutor. In a little over a year, Nina Vivenzio has helped with the arrests of more than 300 individuals, resulting in more than 100 convictions. As a result of this successful partnership, the Legislature funded another prosecutor position this year, and Gallagher said the state expects to hire the second dedicated PIP prosecutor for Miami-Dade before the end of the year.
The Department of Financial Services, Division of Insurance Fraud, investigates various forms of fraud in insurance, including health, life, auto, property and workers' compensation insurance. Anyone with information about this case or another possible fraud scheme should call the department's anti-fraud hotline at 1-800-378-0445. A reward of up to $25,000 may be offered for information directly leading to an arrest and conviction.
A list of those arrested today is attached. They all were booked into the Dade County Jail.
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As a statewide elected officer of the Florida Cabinet, Chief Financial Officer Tom Gallagher oversees the Department of Financial Services, a multi-division state agency responsible for management of state funds and unclaimed property, assisting consumers who request information and help related to financial services, and investigating financial fraud. Gallagher also serves as the State Fire Marshal.
STAGED CRASH RING ARRESTS
Joaquin Noda Bellma (AKA El Gordo), 44, 721 NW 30 Court, Miami – insurance fraud, 21 counts; grand theft, 21 counts; organized scheme to defraud, 3 counts.
Daisy Duranza, 42, 965 East 24 St., Hialeah – insurance fraud, 6 counts; grand theft, 6 counts.
Roberto Duranza, 46, 965 East 24 St., Hialeah – insurance fraud, 6 counts; grand theft, 6 counts.
Roberto Duranza, Jr., 24, 965 East 24 St., Hialeah – insurance fraud, 6 counts; grand theft, 6 counts.
Olga Fernandez, 57, 15111 NW 29 Ave., Opa-Locka – insurance fraud, 3 counts; grand theft, 3 counts; staged accident, 1 count.
Pedro Herrera, 64, 3111 NW 27 St., Miami – insurance fraud, 17 counts; grand theft, 17 counts; staged accident, 1 count.
Heyllene Artemisa Jimenez, 32, 4605 NW 185 St.,Opa-Locka – insurance fraud, 3 counts; grand theft, 3 counts; staged accident, 1 count.
Carmen Mar Penarrieta, 42, 606 West 81 St. #315, Hialeah – insurance fraud, 5 counts; grand theft, 5 counts.
Lucy Ramos, 50, 3031 NW 19 Ave., #320, Miami – insurance fraud, 11 counts; grand theft ,11 counts.
Maria Rosa Silva, 20, 606 West 81 St. #315, Hialeah – insurance fraud, 16 counts; grand theft,16 counts.
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