Long Islanders snared in statewide crackdown on auto insurance fraud

ALBANY — Sixteen people have been charged as part of an ongoing crackdown by New York State on incidents of suspected auto insurance fraud.

Gov. Kathy Hochul on Tuesday announced the investigation by state police and the state Department of Financial Services, which came after Hochul pushed through reforms this past legislative session meant to lower the cost of auto insurance in the state.

The investigations found nearly $500,000 in attempted fraudulent claims in more than a dozen cases across the state, including two in Suffolk County.  

New York ranks second in the nation for staged insurance fraud, with carriers reporting 43,811 incidents of suspected fraud to the state last year, according to the governor’s office. That marks an 80% increase from 2020.

"Auto insurance fraud is not a victimless crime — every staged crash, fraudulent claim and criminal scheme ultimately drives up costs for New Yorkers who play by the rules," Hochul said in a statement.

The arrests include two cases from Suffolk County. 

In one,  a 38-year-old man filed a $50,000 insurance claim in January, stating his motorcycle had been stolen.

An investigation determined the man’s motorcycle wasn't insured at the time it was stolen. He was charged with two felonies.

In a second case,  a 41-year-old woman was involved a July 2025 car crash and claimed she needed medical treatment. Her medical bills totaled more than $12,600 and insurance paid out $11,334.

The governor’s office did not say how police uncovered the alleged scheme but the woman was charged with insurance fraud, grand larceny and falsifying business records.

The disposition of both cases was not immediately available.

As part of the reform package Hochul proposed earlier this year, the state dedicated more resources to state police and Department of Financial Services specifically to conduct insurance fraud investigations. A new task force combines state police investigators with specialists from DFS.

Among the reforms were provisions allowing prosecutors to go after people who organize staged crashes, in addition to those involved in a bogus crash.

Private companies have also tried to tamp down the number of fraudulent crashes they face.

Uber Technologies and Liberty Mutual Fire Insurance Co. sued over eight allegedly staged hit-and-run wrecks between August 2023 and March 2025 in Hempstead, Lynbrook, Valley Stream and Westchester County, Newsday previously reported.

FedEx also sued a Deer Park orthopedic spinal surgeon for allegedly conducting unnecessary surgeries on drivers and passengers involved in alleged staged crashes with the parcel carrier's vehicles, according to a Newsday story at the time.

The auto insurance reforms also addressed other factors by limiting certain damages available to drivers who engage in unlawful behavior, such as driving while intoxicated, at the time of a crash.

They also tightened standards for serious injury claims, limited recoveries for drivers responsible for a crash and gave the state more oversight over how insurers set rates and their profits.

The nonprofit Citizens Budget Commission estimates the changes could shrink premiums by as much as 10%, saving at least $200 per person annually and as much as $2 billion for New York residents and businesses, without any additional state spending.