Harold Gross, 29, of Passaic, Husayn Encarnacion, 35, and his wife Jenny Encarnacion, 33, both of Paterson, admitted to conspiring in the scheme before Judge Randal Chiocca in Passaic County Superior Court. Gross pleaded guilty to third-degree theft by deception and the state will recommend a prison sentence of four years and that he pay restitution in the amount of $2,500. Husayn Encarnacion pleaded guilty to third-degree hindering an investigation and his wife Jenny pleaded to third-degree theft by deception. The state is recommending probation for both and that Jenny pay restitution in the amount of $8,725.

“The co-conspirators in this case sought to benefit financially by participating in a staged automobile accident that not only endangered their own well-being, but also that of any drivers, passengers or pedestrians who may have been nearby on that day,” said Acting Attorney General Hoffman. “They wanted to cheat insurers and were reckless in that pursuit.”

“As insurance companies respond to staged accidents and pay out the claims associated with them, premiums for law abiding drivers will increase,” said Acting Insurance Fraud Prosecutor Ronald Chillemi. “Drivers cannot participate in a fair marketplace as long as criminals seek to defraud the insurance industry.”

The Encarnacions and Gross were indicted on April 10, along with three Passaic residents: Ariel Ballista, 27, Jonathan Damian, 26, and Olivares R. Liberato-Cohen, 46. The cases against Ballista, Damian and Liberato-Cohen are pending.

According to the indictment, Liberato-Cohen allegedly recruited Gross, Damian, Husayn and Jenny Encarnacion and an unindicted co-conspirator to participate in the staged automobile accident. Husayn Encarnacion is alleged to have assisted Liberato-Cohen in the recruitment of his wife, Jenny.

An investigation determined that on April 25, 2009, Liberato-Cohen allegedly purposely drove his Dodge Caravan, containing Damian, Gross and Jenny Encarnacion, into a Dodge Avenger, driven by an unindicted co-conspirator. It is alleged that Ballista was the sole passenger in the Avenger, and that he agreed to participate in the conspiracy following the collision.

Following the staged accident Gross and Jenny Encarnacion each visited certain designated medical providers and submitted, or caused to be submitted, claims in the amount of $2,500 and $8,725, respectively, to Mercury Insurance Group.

The investigation by the Office of the Insurance Fraud Prosecutor began as part of Operation Bang-Up, which has targeted several automobile accidents that occurred in Passaic County during a four-year span from 2009-13.

Deputy Attorneys General Bradford Muller and Michael Locke, Lt. Frederic Moore, Lt. Weldon Powell, Det. Janessa Jones, and Det. Cortney Lawrence coordinated the investigation. Analyst Bethany Schussler assisted in the investigation. Additional investigative assistance was provided by Det. Grace Rocca and Det. Suzanna Lopez. Acting Insurance Fraud Prosecutor Chillemi also thanked the Special Investigation Units from Mercury Insurance Group and Plymouth Rock Assurance, in particular Michelle Miller of Plymouth Rock Assurance, as well Michael Mullane from the Division of Taxation for their assistance in the investigation.

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