Old Bridge, New Jersey Man and Corporation Plead Guilty to Insurance Fraud

November 30, 2007 -- TRENTON - New Jersey Attorney General Anne Milgram and Criminal Justice Director Gregory A. Paw announced that an Old Bridge man and his firm have pleaded guilty in a car “give up” scam.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Stephen J. Pielli, 46, of Old Bridge, pleaded guilty yesterday before Superior Court Judge Frederick DeVesa in Middlesex County to third-degree insurance fraud. Pielli’s landscaping corporation, General Green Inc., with a business location on Hawkins Road in Old Bridge, pleaded guilty to second-degree insurance fraud.

Pielli admitted that as part of a “give up” scam between Feb. 28 and Sept. 13, 2006, he submitted a phony auto theft claim to an insurance company involving a car he leased through his corporation, General Green. Pielli admitted that he falsely reported to the Old Bridge Police Department and High Point Safety and Insurance Management Company that the 2005 Mercedes Benz SL500 had been stolen from the driveway of his home. In fact, the car had not been stolen. Pielli subsequently sued High Point for insurance claims money, even though the claim he submitted was false. An owner initiated “give up” occurs when the owner voluntarily gives up his car to another so that it can be chopped for parts or retagged with a different vehicle identification number and sold, and so that a phony insurance claim can be submitted.

This case was referred to the Office of Insurance Fraud Prosecutor by the Special Investigative Unit of High Point Safety and Insurance Management Corporation, which initially uncovered the fraud. Prosecutor Brown thanked High Point for their assistance in this matter.

State Investigator Amy Carson, Civil Investigator William Frey and Deputy Attorney General Carol Stanton Meier were assigned to the investigation. Meier represented the Office of Insurance Fraud Prosecutor at the guilty plea hearing.

“Phony insurance claims resulting from automobile give-up schemes remain a priority for the Office of Insurance Fraud Prosecutor,” said Prosecutor Brown. “It is clear that too many people are willing to lie to an insurance company and claim their car was stolen in order to avoid a repair bill or expensive end-of-lease payments.”

Second-degree crimes carry a maximum criminal fine of $150,000. Third-degree crimes carry a maximum punishment of five years in state prison and a criminal fine of $15,000. Pielli and his company may also face civil insurance fraud fines. Sentencing is scheduled for Feb. 29.

Prosecutor Brown 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 1-877-55-FRAUD or visiting the Web site www.NJInsuranceFraud.org. State regulations permit an award to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.

The Office of Insurance Fraud Prosecutor was established by the Automobile Insurance Cost Reduction Act of 1998. The office is the centralized state agency that investigates and prosecutes both civil and criminal insurance fraud, as well as Medicaid fraud.

Source: New Jersey Attorney General

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