A 69-year-old man from Cortland Manor has been sentenced to 5 years in prison for his role in a massive multi-million dollar insurance scam involving 911 operators and members of the NYPD. Nathaniel Coles also had to give up $2.5 million in funds he stole through the scam, which ran from 2014 to 2019.
Here’s how the diet worked. Fraud mastermind Jelani Wray and Fraudster #2 Coles bribed 911 operators and NYPD members to inform them of the names and private information of those involved in motor vehicle accidents in New York. York.
After receiving the information, the fraud continued by contacting the crash victims and lying to them that the New York State Department of Transportation was requiring them to be evaluated at a medical clinic to determine the extent of their injury. This bogus medical exam was later billed to the NYS no-fault insurance program, with medical clinics overcharging and billing patients, who were unaware of the fraud.
More than 60,000 accident victims, who have used New York State’s no-fault insurance program, have been contacted or participated. The medical clinics then donated a portion of the billing proceeds to Wray, Coles, and others.
Who paid the final bill for this scam? Those of us New Yorkers who drive cars and pay some of the highest auto insurance policies in the country.
The scam was uncovered when former Westchester prosecutor Anthony Scarpino opened an investigation into a clinic operated by Coles and uncovered much bigger fraud. Scarpino passed it on to the FBI, where he previously worked as an agent, and the scam was fully uncovered.
As many as 50 people received bribes of up to $4,000 per month in the scam, and 14 others were sentenced to prison terms and confiscation of illegally earned funds.
In addition to a 5-year prison sentence, Coles was ordered to pay the colossal sum of $2.59 million he illegally obtained through fraud.
If you see Mr. Coles in North Westchester, thank him for helping to raise our auto insurance rates in New York State.