Two More Charged with Insurance Fraud

The ongoing investigation by the Pennsylvania Attorney General Tom Corbett into an insurance fraud has resulted in another arrest of a women and her brother. Elsa Perez-Delossantos, 38 , a resident of Pennsylvania and the her brother Antonio Perez-Delossantos, 37, of Brooklyn, have been charged with insurance fraud after she allowed her brother to use her address in order to obtain a cheaper auto insurance rates.

The arrested were among the other 24 people arrested in the ongoing investigation of New York and New Jersey residents providing false residency information to the State Department of Transportation to get a Pennsylvania license or vehicle registration rates and obtain cheaper Pennsylvania insurance rates.

Pennsylvania insurance rates are $2,000 to $4,000 per year cheaper in comparison to other two states.

Claiming a false Pennsylvania address helps some save $4,000 a year in premiums. The practice, better known as rate evasion, annually leads to $12 million to $15 million in claims on Pennsylvania policies that should not have been written, Corbett said.

The defendants have been charged with felony count of insurance fraud that carries a maximum prison sentence of seven years and a $15,000 fine.

The investigation helped break up a scam of a Philadelphia title company that signed up numerous New York City drivers as Pennsylvanians between January 2005 and September 2006 in order to fraudulently obtain cheaper insurance rates.


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