A 69 year old Cortland Manor man was sentenced to 5 years in prison for his role in a massive multi-million dollar insurance scam that involved 911 operators, and members of the NYPD. Nathaniel Coles also had to forfeit $2.5 Million in funds he stole through this scam, in which operated from 2014-2019.
Here’s how the scheme worked. The mastermind of the fraud, Jelani Wray, and Coles, the #2 fraudster, bribed 911 operators and members of the NYPD to inform them of the names and private information of persons involved in motor vehicle accidents in New York City.
After receiving the informaton, the fraud continued by contacting the accident victims and lying to them claiming that the NYS Department of Transportation required them to seek evaluation at a medical clinic to determine the extent of their injury. This fake medical review was then charged to the NYS no-fault insurance program, with the medical clinics overbilling and charging the patients, who were unaware of the fraud.
More than 60,000 accident victims, who used New York State’s no-fault insurance program, were contacted or participated. The medical clinics then kicked back some of the billing proceeds to Wray, Coles and others.
Who paid the final bill in this scam? Those of us New Yorkers who drive a car and pay auto insurance policies that are among the highest in the nation.
The scam was uncovered when former Westchester DA Anthony Scarpino began an investigation into a clinic that Coles operated, and found a much larger fraud going on. Scarpino passed it onto the FBI, where he formerly worked as an agent, and the scam was completely uncovered.
As many as 50 people received bribes of up to $4,000 per month as part of the scam, and 14 others were sentenced to jail time and forfeiture of funds illegally gained.
Along with a 5-year prison sentence, Coles was ordered to pay a whopping $2.59 Million in money that he illgally obtained from the fraud.
If you see Mr. Coles in northern Westchester, thank him for helping increase our auto insurance rates in New York State.
