David Morgan, Insurance Fraud, New York 2012

Utica Man Sentenced in Insurance Scandal

A Utica man has been sentenced to 21 months in prison for his role in an insurance fraud scheme.

David Morgan, 55, was sentenced by United States District Court Judge Norman A. Mordue in Syracuse on July 31, 2012.

Morgan was found guilty of mail fraud and admitted to agreeing to assist other conspirators in the scheme. The scheme involved a staged motor vehicle accident on Harbor Lock Road in Utica on March 20, 2006.

The collision was staged, and Morgan's wife, Cynthia Morgan, claimed to have been injured while a passenger in a Ford van, along with Joseph Dellerba. In fact, they were not passengers at the time of the impact.

Morgan and his wife subsequently initiated a civil lawsuit seeking a monetary recovery as a result of injuries suffered by Cynthia in the fictitious accident. That suit was settled with a payment of $30,000 to the Morgans.

The case was investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation Division, and the New York State Department of Financial Services, Criminal Investigations Unit.

The case was prosecuted by Assistant United States Attorney Edward R. Broton.

Morgan will serve three years of supervision following his release from incarceration and was ordered to pay restitution in an amount exceeding $1.4 million.

Source: https://www.justice.gov/usao-ndny/pr/utica-area-man-sentenced-insurance-fraud-case