eNewsAutoCar.com

TRENTON, NJ - November 15, 2007 - Attorney General Anne Milgram and Criminal Justice Director Gregory A. Paw announced that a Passaic County man pleaded guilty today to a $13,000 auto insurance scam.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Frank M. Petrelli, 26, of Totowa, pleaded guilty before Superior Court Judge Peter J. Vazquez in Hudson County to a criminal accusation charging him with third-degree insurance fraud.

In pleading guilty, Petrelli admitted that in 2004 he falsely reported that his 1998 Audi had been stolen while parked in Hoboken. He subsequently caused another person to submit a phony theft claim to New Jersey Manufacturers Insurance Company. New Jersey Manufacturers paid $13,101 on the claim. Petrelli admitted that he had willingly given his car to another so it would appear to have been stolen and a false theft claim could be submitted. Investigators uncover evidence of such owner-initiated “give ups” when investigating auto theft claims. Typically, the owner voluntarily gives up his car to another so it can be chopped for parts or retagged and sold. As in this case, the owner then submits a phony insurance claim.

State Investigator Wendy Wylie, Civil Investigators John Farley and Erol English, and Deputy Attorney General William T. McGovern were assigned to the investigation. McGovern represented the Office of Insurance Fraud Prosecutor at the guilty plea hearing.

This case was referred to OIFP by the Special Investigative Unit of New Jersey Manufacturers Insurance Company which initially uncovered the fraud and greatly assisted OIFP in the investigation. Insurance Fraud Prosecutor Brown thanks New Jersey Manufacturers for their assistance in this matter.

Petrelli is scheduled to appear before Judge Vazquez on Dec. 21 to be sentenced. Third-degree crimes carry a sentence of up to five years in prison and a fine of up to $15,000. Petrelli also may face civil insurance fraud fines.