Queens District Attorney Richard A. Brown, Police Commissioner Raymond W. Kelly and New York State Insurance Superintendent Gregory V. Serio, announced today that 28 car owners and 43 other individuals have been arrested or are being sought in a large-scale $1.0 million automobile theft and insurance fraud "sting" operation.

          District Attorney Brown said, "The message that the law enforcement community is sending as a result of this investigation is that auto insurance fraud is a high-risk undertaking -- if you cheat you will get caught and you will suffer the consequences. Those who engage in insurance fraud drive up insurance rates for everyone else -- and law enforcement and the insurance industry have joined forces in a relentless campaign to slam the brakes on them."

          Police Commissioner Kelly said, "Our undercover detectives did an outstanding job running the ‘sting’ operation throughout this 16-month, multi-agency investigation. They maintained their cover and collected enough evidence to ensure a strong prosecution. This crime ring made hundreds of thousands dollars by filing false claims with insurance companies and selling off cars for parts. They are a diverse group of criminals from many backgrounds, but they committed similar crimes and now they will pay the price in prison."

          Superintendent Serio said, "The individuals arrested today defrauded insurers by giving up their vehicles as part of this scheme, but that is not the only crime here -- this type of fraud victimizes all of New York's honest premium-paying consumers who end up paying the price in increased auto rates. The arrests today of a financial advisor, a New York City firefighter and a retired transit worker, among others, proves that criminals come in all shapes and sizes. Our ongoing collaborative efforts with the Queen's District Attorney's Office and the NYPD to arrest and prosecute these crooks have been successful and sends out a clear message -- if you file a fraudulent insurance claim you will pay the price."

          The centerpiece of the operation was a police undercover towing and wrecking garage in Ozone Park, Queens that served as a virtual motor vehicle fraud drive-in center and at which illicit transactions were audio and video taped by NYPD Auto Crime Division detectives.

          Among the defendants charged are a Manhattan financial advisor, a New York City firefighter and a retired New York City transit worker who allegedly gave up their vehicles and thereafter falsely reported them as having been stolen in order to obtain insurance settlements. The charges are contained in 15 indictments and 46 criminal complaints.

          The arrests were the result of an investigation known as Operation READY, WILLING & ABLE, the latest of a series of undercover operations in Queens County targeting auto insurance fraud that began in 1991 and which has resulted in an 82.3% reduction in the number of vehicles reported stolen in Queens County since December 1990.

          The current "sting" operation was conducted by the NYPD’s Organized Crime Control Bureau Auto Crime Division, the District Attorney’s Organized Crime and Rackets Bureau and the New York State Insurance Department.

          The District Attorney said that the investigation began in July 2001 when undercover detectives assigned to the NYPD Auto Crime Division set up a towing and wrecking business -- Able Towing -- at 137-25 78th Street near Linden Boulevard in Ozone Park, Queens. The detectives put out the word on the street that they would pay cash for cars "no questions asked" and began to purchase vehicles from middlemen who were disposing of vehicles unwanted by their owners.

          The detectives carefully gathered incriminating evidence as vehicles from insurance fraud cheats were driven to their undercover garage over the ensuing 16 months. The evidence included police and insurance records which contained claims by all of the vehicles’ owners that their vehicles had been stolen.

          According to the charges, the car owners falsely reported to police that their vehicles had been stolen, when, actually, their vehicles were in the custody of the undercover police officers who were running the "sting" operation. The car owners are alleged to have also filed claims with their automobile insurance carriers falsely reporting that their vehicles had been stolen and to have thereafter received settlements of up to $33,600. In each instance, car owners allegedly transferred the cars they purportedly had reported as stolen to other individuals -- middlemen -- who in turn sold them to undercover detectives for as little as $500 each.

          The defendants have been charged with various crimes including Grand Larceny in the Third Degree, Insurance Fraud in the Third Degree, Falsely Reporting an Incident in the Third Degree and Conspiracy. Most face up to seven years in prison, if convicted.

          The operation has resulted in the recovery of 43 vehicles, including expensive, almost new SUVs including a 2002 Jeep Liberty, a Mercedes Benz worth $32,000 and a Lexus worth $27,000. All 43 vehicles together have a total market value of approximately $1.0 million.

          Among those charged are:

- Michael Coticchio, 32, 97-17 161ST Avenue in Howard Beach, Queens, a financial advisor currently employed by Bank Audi in Manhattan. He is alleged to have stolen $33,603. He allegedly claimed to police that he last saw his car, a 1999 Mercedes Benz, on March 5, 2002 at 7:10 a.m. at 94th Street and Pitkin Avenue in Ozone Park, Queens. However, he is alleged to have transferred his vehicle approximately eight days before, on February 26, 2002, when it was observed by NYPD detectives at Ricocchet Collision World, 215-26 Jamaica Avenue, Jamaica, Queens. The investigation revealed that at Ricocchet the front end of Coticchio’s Mercedes was attached to another 1999 Mercedes Benz which had sustained front end damage. Based on Coticchio’s reportedly false claim that his car had been stolen, his insurance carrier -- State Farm Insurance Company -- paid a settlement of $33,603 to him and to his finance company.

- Joseph Farrell, 32, a resident of 6 Eastwood Drive in North Babylon, New York, a New York City firefighter assigned to Ladder Company 130 at 119-11 14th Road in College Point, Queens. He is alleged to have stolen $4,026. He allegedly claimed to police and to his insurance carrier, American Express Insurance, that he last saw his 1995 Saturn sometime between 4 p.m. and 9 a.m. on February 23 and 24, 2002 in front of his Suffolk County residence. However, he is alleged to have transferred his vehicle to an apprehended third party, on February 13, 2002, approximately 10 days before the reported theft, the day it was sold for $300 to an undercover detective at the towing garage. Based on Farrell’s reportedly false claim that his car had been stolen, his insurance company paid him a $4,026 settlement.

- Nicholas Grado, 62, of 1075 Rensselaer Avenue, on Staten Island, a retired New York City transit worker. He is alleged to have stolen $32,225. He allegedly claimed to police and to his insurance carrier, State Farm Insurance Company, that he last saw his 1997 Mercedes on January 18, 2002, at about 11 a.m. in a parking lot at 89-73 Bay Parkway in Brooklyn. However, he is alleged to have transferred his vehicle to an apprehended third party, on January 15, 2000, three days before the reported theft, the day it was brought to the undercover towing garage. Based on Grado’s reportedly false claim that his car had been stolen, his insurance company paid him a $32,225 settlement.

          District Attorney Brown, Police Commissioner Kelly and Superintendent Serio expressed their appreciation to three insurance companies -- AIG, Progressive and Allstate –- for their cooperation and support.

          The investigation was conducted by NYPD Detectives John Duggan and Phillip Lynch under the supervision of Captain Michael Byrne, Lieutenant David Linkletter and Sergeant Sam Milisi of the Auto Crime Division and under the overall supervision of Chief William A. Morange of the Organized Crime Control Bureau.

          The case is being prosecuted by Assistant District Attorneys Andrew H. Kaufman and Michelle Wolf of the District Attorney’s Organized Crime and Rackets Bureau under the supervision of Assistant District Attorneys Gerard A. Brave, Chief, and Marc Resnick, Deputy Chief, and under the overall supervision of Executive Assistant District Attorney for Investigations Peter A. Crusco and Assistant District Attorney Linda M. Cantoni, Counsel to the Investigations Division.

          It should be noted that criminal charges are merely accusations and that defendants are presumed innocent until proven guilty.