Utica Man Sentenced in Insurance Fraud Scheme
A 55-year-old 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.
Morgan was also ordered to pay restitution in an amount exceeding $1.4 million and will serve three years of supervision following his release from incarceration.
According to court documents, Morgan pled guilty on July 31, 2012, to mail fraud. He admitted to agreeing to assist other conspirators in an insurance fraud scheme in or about 2005.
The scheme involved a staged motor vehicle accident on Harbor Lock Road in Utica on March 20, 2006. Joseph Dellerba and Cynthia Morgan, David’s wife, claimed to have been injured while passengers in a Ford van which was struck by a Ryder truck driven by Michael Matrulli.
However, the collision was staged, and Dellerba and Morgan were not passengers at the time of the impact. Dellerba and Morgan claimed to have been injured as a result of the accident and submitted false insurance claims, including claims for personal injuries, no fault benefits and disability benefits.
Dellerba and Morgan sought medical treatment for non-existent injuries or injuries that they claimed were the result of the collision. David 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.
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. The scheme ultimately cost insurance companies over $1.4 million in restitution, with the Morgans receiving a payment of $30,000 from a civil lawsuit.
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Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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