OneBeacon Assists N.Y. Authorities with Major Fraud Investigation; 16 Indicted in Sting

Continuing its fight against insurance fraud, OneBeacon Insurance Group assisted the New York Police Department and the Bronx District Attorney’s Office in a major investigation that led to the arrest Wednesday of four active police officers and one former police officer for reportedly selling fraudulent police reports on nonexistent auto accidents.

In addition, Bronx County authorities arrested 11 people on Tuesday and Wednesday who are reported to have submitted falsified insurance claims for injuries listed on those fraudulent reports. These individuals were charged with multiple felony counts, including conspiracy to commit insurance fraud – a Class D felony in New York.

Larry Milanesi, regional manager of OneBeacon’s Special Investigations Unit, said the case demonstrates what the public and private sectors can achieve working together. “Each of us pays for insurance fraud in higher costs for consumer products, higher taxes for law enforcement and higher insurance premiums,” said Milanesi. “OneBeacon will do whatever it can to help combat this problem.”

Milanesi added that resources from throughout OneBeacon came into play during the 26-month investigation.

“Our Underwriting department produced specially identified policies that could be tracked to those charged. Claims staff documented related claim activity thoroughly. Our investigators trained undercover operatives who were used to infiltrate and obtain treatment at suspect medical clinics. Finally, we were pleased to supply evidence for the Grand Jury hearing that led to these criminal indictments.”