TRENTON – Acting Attorney General John J. Hoffman and the Office of the Insurance Fraud Prosecutor (OIFP) announced today that the leader of a car accident staging scam pleaded guilty for orchestrating two such ploys in 2010, which resulted in insurance payouts in the amount of $179,210 for medical treatment and personal injury settlement proceeds.

Olivares R. Liberato-Cohen, 46, of Passaic, pleaded guilty to one count of second-degree conspiracy to commit theft by deception before Superior Court Judge Adam Jacobs in Passaic County. The state will recommend a five-year state prison term at his sentencing hearing, scheduled for February 6, 2015. He and his co-conspirators will be required to pay restitution in the amount of $179,210.

“A car accident is a worst-case scenario for any driver or passenger, putting everyone involved in harm’s way, but the defendant instead saw this dangerous situation as the perfect stage to enrich himself,” said Acting Attorney General Hoffman. “This pursuit not only defrauded insurance companies, but it also put the public’s safety at risk.”

Liberato-Cohen admitted that he was the lead organizer of two staged automobile accidents that occurred on August 19 and October 17, 2010.  Liberato-Cohen was the interface between the medical providers and the other co-defendants.  He recruited the participants, directed how the accidents were to occur, and then told the participants where to treat.

“This scheme and ones like it have far-reaching effects on the rates insurance customers have to pay because multiple sectors of the industry have to pay out for claims,” said Acting Insurance Fraud Prosecutor Chillemi. “Bogus claims have residual and multiplying effects, which often result in artificially spiked premiums passed on to consumers. The only way to stop that from happening is vigorous prosecution, which deters others from trying.”

Liberato-Cohen is also facing charges from a separate indictment that alleges his planning of another staged car accident in 2009. According to that indictment, Liberato-Cohen allegedly recruited four indicted co-conspirators to participate in the staged automobile accident. An investigation determined that he allegedly purposely drove his Dodge Caravan, containing three co-conspirators into a Dodge Avenger, driven by an unindicted co-conspirator. Three of the participants in that scheme pleaded guilty last month to charges related to the “accident”.

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.

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