Massachusetts Man Indicted for $20K Insurance Fraud Scheme

A Massachusetts man has been indicted in connection with stealing nearly $40,000 through multiple insurance fraud and unemployment schemes, according to the state’s attorney general.

Prosecutors alleged that John Toyias, the owner of Jayco Landscaping Co., filed fraudulent insurance claims for alleged property damage to a methane pipe owned by the town of Canton. Jayco manages waste removal and dumping contracts for several cities and towns.

The attorney general’s office says that, in May 2006, a driver backed over a methane pipe with their vehicle on a contracted site in Canton and — although there was no visible damage — Toyias insisted that the driver report the incident and alleged damages to his insurer, Arbella Insurance Co. Toyias subsequently submitted invoices for emergency repairs made to the methane pipe to Arbella, without contacting the town of Canton. As a result of the claim, Toyias was paid $9,925 by the insurer.

According to authorities, in May 2007, a Jayco employee contacted Premier Insurance Company (Premier) to report a similar incident in which he backed his vehicle into the same methane pipe claimed in 2006. Toyias again claimed emergency repair work was completed on the methane pipe immediately following the accident and submitted repair invoices to Premier for $9,925. Subsequent investigation by Premier noted the previous claim made in 2006, and further investigation by an outside property damage appraiser at the site of the alleged incident found no evidence of any repairs made to the pipe. Premier ultimately denied the claim and referred the case to the Insurance Fraud Bureau of Massachusetts for further investigation.

In a separate scheme, prosecutors allege that Toyias wrongly collected unemployment benefits while working as president and owner of Jayco.

In all, Toyias faces two counts of insurance fraud, 55 counts of unemployment fraud and two counts of larceny.