TRENTON – Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor (OIFP) today announced that an East Orange man was indicted on charges that he allegedly fabricated a story about being carjacked so that he could receive from his insurer approximately $38,500 to pay for the purportedly stolen car.
Maurice Douglas, 42, was charged with second-degree insurance fraud, attempted third-degree theft by deception and fourth-degree false reports to law enforcement. The charges were included in a state grand jury indictment obtained by the OIFP on Monday, September 8.
“A carjacking is violent crime and one that law enforcement throughout New Jersey has sought to stop in its tracks, but this defendant tried to leverage this scourge to his advantage so he could gain financially,” said Acting Attorney General John Hoffman. “An allegedly invented story about one crime has landed the defendant accused of three more.”
The indictment alleges that on March 20 Douglas reported to East Orange police a carjacking at his residence. When police responded to the scene, Douglas said that two males stole his 2007 Mercedes S-550 from him as he exited the vehicle at his house. He further alleged that one pointed an assault rifle at him, while the other stole his cell phone. Douglas said the men fled in the Mercedes and another vehicle.
The following day, East Orange police discovered Douglas’ car in an abandoned lot – its headlines and taillights stripped with evident damage to its body and windshield. That same day, the state alleges Douglas called Plymouth Rock Assurance and filed a claim for the value of his car, saying that he was carjacked.
An investigation by the East Orange police uncovered time and date stamped surveillance video of the immediate route that Douglas claimed his assailants fled. The state is alleging those videos do not show either of the vehicles the carjackers were purportedly to have been driving when they fled.
‘Both law enforcement and the insurance industry seek to end the ever-present danger of carjacking,” said Acting Insurance Fraud Prosecutor Ronald Chillemi. “But their efforts to ensure the public’s safety, which in turn keeps premiums low, are undermined by scams like the one Douglas allegedly tried to perpetrate.”
Deputy Attorney General Colin Keiffer presented the case to the state grand jury. Detectives Terrence Buie and Detective Sergeant Jarek Pyrzanowski coordinated the investigation. Acting Insurance Fraud Prosecutor Chillemi thanked the East Orange Police Department for its assistance in the investigation.
The indictment is merely an accusation and the defendant is presumed innocent until proven guilty. Second-degree crimes carry a maximum sentence of 10 years in state prison and fines up to $150,000, while third-degree crimes carry a prison sentence of five years and fines up to $15,000. Fourth-degree crimes can carry a state prison sentence of up to 18 months and a fine of up to $10,000.
Acting Insurance Fraud Prosecutor Chillemi noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll‑free hotline at 1‑877‑55‑FRAUD, or visiting the Web site at www.NJInsurancefraud.org. State regulations permit a reward to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.
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