Large-scale automobile insurance fraud ring disrupted

GREENFIELD, Mass — Thirty eight people were charged Aug. 22 for their role in a large-scale auto insurance fraud ring that resulted in hundreds of thousands of dollars in lost revenue. The charges follow a year-long investigation led by U.S. Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) with assistance from the Insurance Fraud Bureau of Massachusetts (IFB), the Northwestern District Attorney's Office, and the Massachusetts State Police.

The scheme is alleged to involve individuals primarily from the metropolitan New York City area who insured and registered vehicles in Massachusetts by claiming to live at false or non-existent residential addresses in Northampton, Easthampton and Greenfield. By doing so, the involved individuals are alleged to have paid substantially lower premiums than they otherwise would have had they reported their true residential addresses in and around New York City. During the six years during which this scheme is alleged to have operated, hundreds of thousands of dollars in premium avoidance is alleged to have occurred.

"Collaboration with law enforcement at all levels is a powerful tool in the fight against organized criminal groups," said Michael Shea, deputy special agent in charge for HSI Boston. "HSI is committed to leveraging its unique statutory authorities and investigative expertise to bring down groups involved a myriad of criminal activities as has been alleged in this case. I would also like to take this opportunity to congratulate my agents for their tireless efforts and their painstaking attention to detail."

"These indictments are the by-product of the Northwestern District Attorney's Office's ongoing partnership with the Insurance Fraud Bureau, through which we continually strive to detect, investigate and prosecute those who cheat the system and raise insurance costs for all of us," said District Attorney David E. Sullivan.

The Hampshire and Franklin Grand Juries returned 289 indictments against the 38 individuals involved. One hundred thirty-eight of the indictments are against Lefen "Helen" Chen, 55, of Flushing, New York, who is alleged to have orchestrated the scheme by accompanying the other individuals involved to insurance agencies and assisting them with the fraudulent insurance applications. Chen and eight other indicted individuals were arrested in New York August 12-13, 2014, and subsequently waived extradition back to Massachusetts. The arrests were executed with the assistance of the New York Police Department, the Massachusetts State Police, HSI New York, and the Queens District Attorney's Office.

The details contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.