N.Y. Man Pleads Guilty to Conspiracy in $1M Scam

New Jersey Attorney General Peter Harvey announced that a New York man has plead guilty to conspiracy for his reported role in helping to finance a scheme designed to fraudulently collect on a million-dollar insurance policy.

According to Vaughn L. McKoy, Director, Division of Criminal Justice and Insurance Fraud Prosecutor Greta Gooden-Brown, Effy Harari, 46, of Valley Stream, N.Y., pled guilty to a criminal Accusation before Essex County Superior Court Judge Harold Fullilove.

The Accusation, filed by the Division of Criminal Justice – Office of Insurance Fraud Prosecutor, charged Harari with conspiracy (3rd degree). A third-degree crime carries a maximum sentence of up to five years in state prison and a fine of up to $15,000. Harari may also face civil insurance fraud fines pursuant to the civil Insurance Fraud Prevention Act.

At the guilty plea hearing, Harari reportedly admitted that between September, 1997 and May, 1998, he and several co-conspirators, including a public insurance adjuster, conspired to intentionally cause water damage to costume jewelry stored in a warehouse located at 345 Nye Ave., Irvington, Essex County. The jewelry was insured by Fireman’s Fund Insurance Company for $1 million.

Harari and his co-defendants reportedly admitted submitting a fraudulent insurance claim to Fireman’s Fund totaling $973,638 knowing that the jewelry had been intentionally damaged. Harari also admitted contributing $12,000 to help finance the fraudulent scheme. For his part in the scheme, Harari was reportedly promised a portion of the insurance proceeds.

Harari is scheduled to appear before Judge Fullilove on Sept. 9 for sentencing.

Prosecutor Brown noted that as part of the Office of Insurance Fraud Prosecutor’s investigation into this insurance fraud conspiracy, two of Harari’s co-conspirators have previously admitted their participation in the scheme before Judge Fullilove.