TRENTON – Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor (OIFP) announced that a Camden County car salesman pleaded today guilty to defrauding two insurance companies of more than $130,000 by reporting luxury vehicles stolen, even though he knew that the vehicles had been shipped to China.

Steven Shore, 58, of Pennsauken, pleaded guilty before Camden County Superior Court Judge John T. Kelly to two counts of second-degree insurance fraud and second-degree conspiracy. The state will recommend a prison sentence of five years and that he pay restitution in the amount of $68,220. Sentencing was scheduled for December 5.

“By shipping cars to China, Shore was illegally trying to take advantage of the so-called ‘grey market’ of automobiles sales overseas,” said Acting Attorney General Hoffman. “There is incredible demand for luxury vehicles in China, but we have sought to ensure that the demand is not fed through scams like this that harm insurance carriers and their customers alike.”

Shore admitted he perpetrated similar scams involving two Porsche automobiles. In the first instance, he admitted that he stole $68,220 from Liberty Mutual Insurance Company by creating the false impression that a black 2013 Porsche Cayenne was stolen. An investigation determined that Shore purchased the Porsche on Oct. 3, 2012 and purchased an insurance policy for the vehicle the next day. The following month, Shore falsely notified the Pennsauken Police Department that the Porsche had been stolen from outside his residence and subsequently filed a claim with Liberty Mutual Insurance Company. On Dec. 17, 2012, Liberty Mutual paid Shore $68,220, after the car was declared a total loss. An investigation determined that Shore allegedly had shipped the Porsche to China in October 2012.

In the second admitted crime, Shore and a co-conspirator, Michele Yorgan, attempted to steal $63,457 from Travelers Insurance Company by creating the false impression that another black 2013 Porsche Cayenne, purportedly belonging to Yorgan, had been stolen. Shore recruited Yorgan to file a fraudulent claim with Travelers Insurance Company, reporting that her car was stolen.

Shore and Yorgan falsely claimed that Shore had sold the vehicle to Yorgan for $65,000 on March 20, 2013. That day, Yorgan added the vehicle to her insurance policy, even though she was not in possession of the vehicle. On April 11 of that year, Yorgan falsely notified Travelers Insurance Company that “her” Porsche had been stolen the previous day. An investigation determined that Shore did not sell the vehicle to Yorgan on March 20, but actually shipped the Porsche to China in October 2012. Travelers Insurance denied the claim and referred the matter to the Office of the Insurance Fraud Prosecutor.

“Although the demand for luxury vehicles in the United States is high, the current demand in Asian markets is much higher,” said Acting Insurance Fraud Prosecutor Ronald Chillemi. “A new Porsche could be sold in China for more than three times its cost to a consumer here in the United States. Clearly the defendant thought he could benefit from this high mark-up.”

Last month, Yorgan, 43, pleaded guilty to second-degree insurance fraud, second-degree conspiracy, third-degree attempted theft by deception and fourth-degree falsifying or tampering with records. Sentencing is scheduled for October 31.

Deputy Attorney General Colin Keiffer, Sgt. Jarek Pyrzanowski and Detective Terrence Buie coordinated the investigation and were assisted by analysts Christina Runkle and Terri Worthington. Acting Insurance Fraud Prosecutor Chillemi thanked Travelers Insurance Company for referring the matter to the Office of the Insurance Fraud Prosecutor and for their assistance in the investigation.

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