TRENTON
- Division of Criminal Justice Director
Vaughn L. McKoy announced that the Office
of Insurance Fraud Prosecutor has obtained
an indictment charging a Passaic County
couple with insurance fraud for their
roles in an automobile insurance Personal
Injury Protection (PIP) fraud conspiracy.
According to Insurance Fraud Prosecutor
Greta Gooden-Brown, Virginia B. Kinion,
65, Vreeland Avenue, Paterson, and her
husband, John Knight, 48, same address,
were charged with conspiracy, Health Care
Claims Fraud (2nd degree), and attempted
theft by deception (3rd degree). Kinion
was also charged with separate counts
of Health Care Claims Fraud (2nd degree),
theft by deception, tampering with public
records or information (3rd degree), and
two counts of falsifying records (4th
degree). Knight was additionally charged
with falsifying records and false swearing
(4th degree). A second-degree crime carries
a maximum penalty of ten years in state
prison and a fine of $150,000. A third-degree
crime carries a maximum penalty of five
years in state prison and a fine of up
to $15,000. Fourth-degree crimes carry
a maximum penalty of 18 months in state
prison and a fine of up to $10,000. Additionally,
the defendants face possible civil insurance
fraud fines pursuant to the Insurance
Fraud Prevention Act.
The Passaic County Grand Jury indictment
alleges that between June 6 and Dec. 31,
2002, Kinion and Knight submitted a false
automobile insurance policy application
and false PIP claims to the Clarendon
National Insurance Company after being
involved in an automobile accident. An
investigation by the Division
of Criminal Justice -
Office of Insurance Fraud Prosecutor
determined that, at the time of the accident,
neither Kinion nor Knight had automobile
insurance. According to the indictment,
Kinion applied for and received automobile
insurance issued by Clarendon National
Insurance Company on June 7 - a day after
the motor vehicle accident. The investigation
further revealed that Kinion denied involvement
in any accidents during the prior 36 months.
Upon receiving automobile insurance coverage,
Kinion and Knight filed PIP health-care
claims totaling more than $23,100 with
the Clarendon National Insurance Co. According
to the indictment, three days after the
applying for insurance (June 10), Kinion
falsely reported to the Paterson Police
Department that the accident occurred
on June 7. The investigation determined
that on June 11 and/or 12, Kinion returned
to the Paterson P.D. to revise her report,
adding that Knight was a passenger when,
in fact, Knight was the driver at the
time of the accident. Clarendon National
Insurance denied both claims.
State Investigator Wendy Wylie, Civil
Investigator Eileen Bellantine, and Deputy
Attorney General Frank L. Holstein were
assigned to the investigation into this
case. DAG Holstein represented the Division
of Criminal Justice - Office of Insurance
Fraud Prosecutor before the Passaic County
Grand Jury.
The indictment, filed on July 1, is merely
an accusation. The defendants are presumed
innocent unless and until proven guilty
beyond a reasonable doubt.
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