Employee of Insurance Brokerage Company Indicted in Connection with Allegedly Defrauding insurance Companies and Policy Holders of More Than $43,000
Richard Coscia, Jr., age 32, of Winthrop, was charged with Motor Vehicle Insurance Fraud (11 counts), Larceny Over $250 (11 counts), and Larceny Under $250 (3 counts).
"We allege that the defendant defrauded policyholders and insurance companies for his own personal gain, often leaving unknowing customers uninsured," said AG Coakley. "Fraud such as this is egregious and a blatant misuse of consumer trust. Our office will continue to prosecute these crimes to protect consumers from such deceitful and fraudulent business practices."
Authorities allege that between 2007 and 2009, Coscia, Jr. perpetrated a scheme in which he defrauded insurance companies and policy holders by collecting insurance premiums that policy holders owed to insurers and retaining this money instead of passing it on to the insurers. The Attorney General's Office began an investigation after Coscia Jr.'s alleged activities were initially investigated and referred by the Insurance Fraud Bureau of Massachusetts (IFB).
According to authorities, Coscia, Jr. worked for Coscia Insurance Agency (Coscia Insurance) in Winthrop. Consumers obtained insurance, usually for their motor vehicles, through Coscia Insurance. Each month consumers provided Coscia, Jr. with premium amounts that they owed to insurers. Coscia, Jr. allegedly kept all or part of this money instead of passing it on to the insurers. To help perpetuate the sheme, Coscia, Jr. allegedly created and submitted fraudulent records to insurers to make it appear that consumers owed less money to the insurers. In some of these instances consumers' insurance policies were cancelled and they were unknowingly left uninsured. In other instances, consumers paid Coscia, Jr. money to obtain insurance policies for them and Coscia, Jr. retained the funds and never obtained insurance policies for the consumers at all.
Authorities allege that as a result of the scheme, Coscia Jr. defrauded insurance companies and policyholders of more than $43,000.
A Suffolk County Grand Jury returned indictments against Coscia yesterday. Coscia is scheduled to be arraigned on January 18, 2011, in Suffolk Superior Court.
AG Coakley's Insurance and Unemployment Fraud Division works to protect consumers and the integrity of the insurance system by investigating and prosecuting those who commit fraud against all types of insurers, including the Commonwealth's unemployment insurance and workers' compensation system. The prosecution of insurance fraud helps prevent the increase in premiums and taxes that are the result of fraudulent insurance claims. In 2010 the Insurance and Unemployment Fraud Division obtained over $800,000 in restitution orders in 30 matters.
The case is being prosecuted by Assistant Attorney General Brendan O'Shea of AG Coakley's Insurance and Unemployment Fraud Division. The IFB assisted in the case.