Charles G. LaBella,
United States Attorney Southern District of California;
William D. Gore, Special Agent in Charge, San Diego
Division of the Federal Bureau of Investigation; and
Chuck Quackenbush, Insurance Commissioner, California
Department of Insurance, today announce the culmination
of a three-year investigation code-named "Twisted
Metal."
Arrests of 11 individuals
in San Diego and 3 individuals in the Los Angeles
area were carried out this morning.
The California
Department of Insurance and the Federal Bureau of
Investigation,
in partnership with the National Insurance Crime
Bureau, the Immigration and Naturalization Service,
and the San Diego Police Department, have successfully
penetrated a large scale staged auto accident ring
operating out of San Diego. Evidence has been gathered
throughout the State of California regarding 11 staged
automobile accidents. While the arrest sites cannot
be disclosed in order to protect the integrity of
the ongoing investigation, the following search locations
can be disclosed:
- The Law Office of
Inna Elana Gofman
6315 Van Nuys Boulevard,
Suite B,
Van Nuys, California
- The Law Offices
of Ellis and Kingston
6320 Commodore Sloat Drive
Los Angeles, California
- The Law Offices
of Yudelvich and Associates
3435 Camino Del Rio South
Suite 220
San Diego, California
- The residence of
Igor Snarsky
11109 Caminito Inocenta
San Diego, California
- The Chiropractic
Offices of Bruce Ankrom
7200 Parkway Drive
Suite 117
La Mesa, California
- Chiropractic Care
Center
6171 Mission Gorge Road
Suite 110
San Diego, California
- The Chiropractic
Offices of Marvin Spatz
3627 30th Street
San Diego, California
- The Chiropractic
Offices of Kenneth Stern (two locations)
2206 Balboa Avenue
San Diego, California and
355 K Street
Suite D
Chula Vista, California
United States Attorney
Charles G. LaBella comments: "These indictments
illustrate that, together with the responsible state
and federal law enforcement agencies, we will devote
the resources necessary to prosecute those that attempt
to defraud insurance companies for their personal
gain."
William D. Gore, Special
Agent in Charge of the FBI states: "I am proud
of the notable results we have achieved with our
law enforcement partners and our associates in the
private insurance industry. This operation should
not only deter people who are considering participating
in illegal schemes to bilk insurance companies, but
it will also demonstrate the level of commitment
law enforcement has to investigate these crimes.
These illegal activities significantly impact all
of us in our annual insurance premiums."
Insurance
Commissioner Chuck Quackenbush states: "Today's
action brings to a halt, one of San Diego's largest
staged auto
accident rings. This is due to the diligent efforts
put forth by the Department of Insurance Fraud
Division, the Federal Bureau of Investigation,
and the United
States Attorney's Office. This case includes the
arrests of attorneys and doctors, as well as the
principal capper. These lawbreakers have been taken
off the street and as a result they won't be generating
additional costs in fraudulent auto insurance claims
for California consumers."
Since 1995, the California
Department of Insurance (CDI) Fraud Division, the
FBI, the San Diego Police Department, the Immigration
and Naturalization Service (INS) and the National
Insurance Crime Bureau (NICB) have worked jointly
on an undercover scenario to penetrate an organization
involved in staging automobile collisions. The
primary undercover agent was a California Department
of Insurance
investigator. Other undercover agents were from
the San Diego Police Department, the California
Department
of Health Services, the Bureau of Narcotics Enforcement,
as well as other Department of Insurance investigators.
The
undercover agents worked closely with the subjects
of the investigation
who planned and executed 11 staged accidents and
two staged auto thefts. The subjects were tape
recorded describing the manner in which they staged
the collisions,
how the scheme was conducted with the participating
attorneys and doctors, and how the participants
divided the proceeds.
During the course of
the investigation, over 500 undercover contacts
were made in a
22-month period. Over 40 separate fraudulent claims
were made to private insurance carriers based on
the 11 staged collisions.
On May 13, 1998, 14
subjects were indicted in the Southern District
of California (San Diego). The subjects included "cappers," attorneys,
administrators, chiropractors and "stuffed
passengers."
These defendants were each charged with one count
of Conspiracy to Commit Mail Fraud and up to 27
counts of Mail Fraud and Aiding and Abetting.
It should be stressed
that an indictment is only a charge and is not
evidence of guilt. The defendants are entitled
to a fair trial, at which it will be the government's
burden to prove guilt beyond a resonable doubt.
On
June 23, 1998, the California Department of
Insurance, the FBI, the
San Diego Police Department and members of the
Regional Auto Theft Task Force (RATT) executed
search warrants
on nine locations, seven of which were in San
Diego and two of which were in the Los Angeles
area.
Arrest warrants for 14 individuals were also
executed, 11
in San Diego and three in Los Angeles. In all,
over 150 federal and state agents were involved
in the
searches and arrests conducted on June 23, 1998.
Insurance premiums
are higher than they would otherwise be as a result
of unscrupulous medical providers, personal injury
attorneys and other individuals who participate in
schemes to defraud insurance companies out of money
by staging fraudulent automobile accidents. The Chicago-based
National Insurance Crime Bureau estimates that property/casualty
insurance fraud cost U.S. insurance companies and
ultimately those who pay the premiums a total of
$20 billion a year. A substantial portion of this
amount is from staged automobile accident schemes.
The biggest beneficiaries of this illegal business
are dishonest attorneys, medical professionals, and "cappers." The
cooperating passengers also receive a portion of
the illegal proceeds. NICB further estimates that
all forms of insurance fraud cost the U.S. insurance
industry between $30 billion and $50 billion a year.
The average homeowner will pay an extra $200 per
year, and an extra $100 per year for each vehicle
owned, as a result of insurance fraud.
- Title 18, USC, Section
1341 - Mail Fraud;
- Title 18, USC, Section
2 - Aiding and Abetting;
- Title 18, USC, Section
371 - Conspiracy
- Dr. Bruce Edward
Ankrom - 43 years of age, Chiropractor;
- Viatcheslav M.
Borokhov - 52 years of age, "Stuffed Passenger";
- Inna Elana Gofman - 37 years of age, Attorney;
- Dmitry Goldman - 46 years of age, "Stuffed Passenger";
- Gavriyel Kaziyev - 50 years of age, "Stuffed Passenger";
- Irma Elizabeth
Palacios - 53 years of age, Paralegal/Office Administrator;
- Igor Pruchanskiy - 22 years of age, "Stuffed Passenger";
- Mikhail Rozenberg - 53 years of age, Paralegal/Office Administrator;
- Paul G. Shvartsburd - 47 years of age, Physical Therapist;
- Igor Snarsky - 39 years of age, Capper/Recruiter;
- Dr. Marvin Charles
Spatz - 68 years of age, Chiropractor;
- Dr. Kenneth Howard
Stern - 31 years of age, Chiropractor;
- Regina S. Vartanova - 37 years of age, "Stuffed Passenger";
- Anatoliy I. Zakinov - 46 years of age, "Stuffed Passenger".
"Capper" -
The "capper" typically is involved in recruiting "stuffed
passengers" who will be used to submit fraudulent
claims to the insurance companies. The "cappers" are
typically paid a percentage of the total receipts
from the false claims. The "cappers" supply
cooperating passengers for the participating attorneys
and medical providers.
"Stuffed Passengers" -
These individuals are recruited to make false claims
regarding their involvement in automobile accidents.
They are typically coached as to the details of
the fictitious collisions and resulting fictitious
injuries.
"Nail Car" -
This is a term for the victim vehicle involved in
the staged accident that is hit by the "hammer
car." The vehicle is often "stuffed" with
passengers, who then file the fraudulent claims
with the assistance of legal professionals.
"Hammer Car" -
This is a term for the "At Fault" vehicle
in a staged accident that hits the "nail car." This
car is typically insured, and the insurer is often
defrauded of an average of $6000 per claimant per
accident.
"Kickback" -
A term for fees paid to "cappers" by
unethical attorneys and medical providers for the
referral
of accidents. These payments are often made in
cash to conceal them from investigators.
Law enforcement
participants:
- California Department
of Insurance;
- Federal Bureau
of Investigation;
- U.S. Attorney's
Office, Southern District;
- District Attorney's
Office, San Diego County;
- San Diego
Police Department;
- Regional Auto
Theft Task Force;
- Immigration
and Naturalization Service; and,
- The National
Insurance Crime Bureau
Private industry:
- Farmers Insurance
Company;
- 20th Century Insurance;
- Liberty Mutual Insurance;
- Geico Insurance;
- State Farm Insurance;
- Wawanesa Insurance;
and,
- Prudential Insurance
