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Wednesday, 20 February 2013 22:39

NY Man Sentenced for $1.4 Million Fraud

A 66-year-old central New York man has been sentenced to 2 1/2 years in federal prison and ordered to pay more than $1.4 million for staging a car crash to collect insurance, the Insurance Journal recently reported.

The U.S. Attorney’s Office in Syracuse says Joseph Dellerba of Utica conspired with another driver to stage a vehicle collision in March 2006 in Utica in order to collect insurance and health care benefits.

He claimed to have been injured while a passenger in a van struck by a rental truck driven by an accomplice in the scheme.

Officials say he wasn’t in the van at the time of the crash, but submitted insurance claims for non-existent injuries and disability. An insurance company paid the bills for his medical care.

Prosecutors say Dellerba sued in civil court and won a settlement of more than $680,000.

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