Brooklyn Limousine/Taxi Company Owner/Manager Charged with Insurance Fraud

TRENTON, N.J., March 21 -- The New Jersey Attorney General issued the following news release:

Attorney General Jeffrey S. Chiesa announced that a Brooklyn limousine/taxi company owner/manager has been charged in a state grand jury indictment for allegedly registering and insuring limousines and taxis in New Jersey under false pretenses in order to obtain lower insurance premiums.

Moustapha Lo, 43, of Brooklyn, New York, was charged yesterday (March 20) with second-degree insurance fraud, three counts of third-degree theft by deception and three counts of third-degree theft by failure to make required disposition of property received.

At the time of the alleged crime, Lo was the owner/manager and registered agent of Safe & Fare Transportation Inc. (Safe & Fare), located in Newton. The company has an alternate or associated name of Futa Transportation (Futa) with the same address as Safe & Fare. Lo was also the owner/manager and registered agent of Allo Taxi Limited Liability Company (Allo), also located in Newton, New Jersey.

The state grand jury indictment alleges that between Oct. 31, 2007, and Jan. 28, 2008, Lo made fraudulent or misleading statements in initial commercial auto insurance policy applications and in at least five separate insurance policy change request forms by providing false information to a producer or broker associated with Progressive/National Continental Insurance Company. It is alleged that Lo fraudulently claimed that the vehicles he registered under his New Jersey corporations were garaged and operated in Newton, Sussex County, New Jersey, when in fact, they were garaged and operated in New York. It is alleged that, as a result, Lo fraudulently obtained lower premium rate payments to which he was not entitled.

The indictment also alleges that Lo fraudulently obtained $17,537 in premium money from a customer and made the false impression that monthly cash payments paid to his company, Futa, were forwarded to Allstate New Jersey Insurance Company as payments for the customer's 2000 Lincoln Town Car. It is alleged that in the same manner, he fraudulently obtained premium payments of $16,300 from a second customer paid to his company, Safe & Fare, which were to be forwarded to National Continental Insurance Company for the customer=s 1999 Toyota Sienna, as well as fraudulently obtaining $14,400 in premium payments from a third customer, which were paid to Safe & Fare and were to be forwarded to Lincoln General Insurance Company for the customer=s 1997 Chevrolet Astro. It is alleged that, in all three instances, Lo allowed the three automobile policies to lapse for non-payment and kept the cash payments for himself.

The indictment is merely an accusation and the defendant is presumed innocent until proven guilty. Second-degree crimes carry a maximum punishment of 10 years in state prison and a criminal fine of $150,000, while third-degree crimes carry a maximum punishment of five years in state prison and a criminal fine of $15,000.

Deputy Attorney General Carlos A. Lopez and Detective Scott Stevens were assigned to the investigation. Lopez presented the case to the state grand jury. Acting Insurance Fraud Prosecutor Ronald Chillemi thanked Peter Carr, SIU Special Investigator, CAIP Claims of Progressive/National Continental for his assistance in the investigation. The case was referred to the Office of the Insurance Fraud Prosecutor by NJ Commercial Assigned Risk Plan.

Acting Insurance Fraud Prosecutor Ronald Chillemi noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.NJInsurancefraud.org. State regulations permit a reward to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.

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