Douglas “Mauricio” Saenz, 34, of Trenton and Gilberth “Tacho” Navarro Umana, 33, of Hamilton, were indicted by the state grand jury on Friday (March 13) and were arrested today at their homes. Both men were charged with second-degree conspiracy, second-degree impersonation/identity theft, fourth-degree identity theft, two counts of second-degree theft by failure to make required disposition, second-degree misconduct by a corporate official, two counts of third-degree insurance fraud, two counts of third-degree failure to file an income tax return, two counts of failure to pay taxes, one count of fourth-degree workers compensation fraud and two counts of fourth-degree falsifying records. Saenz was also charged with hindering apprehension or prosecution. Saenz and Umana are currently being held in Mercer County jail awaiting a bail hearing.

“The men arrested today allegedly skirted their legal responsibilities of paying taxes and rightfully insuring their employees by using obfuscation and misrepresentation to pocket hundreds of thousands of dollars,” said Acting Attorney General John Hoffman. “The shocking truth is that a stolen identity can be used by nefarious actors to turn simple personal information into a criminal enterprise.”

“The defendants allegedly defrauded their insurance carriers by claiming their company did carpentry work, not roofing work, thus receiving a lower rate for workers’ compensation insurance that reflected safer work,” said Acting Insurance Fraud Prosecutor Ronald Chillemi. “Though the insurance carriers pay the immediate price for this alleged fraud, the cost is eventually passed on to the public through increased insurance premiums.”

 The defendants allegedly employed an unindicted co-conspirator to assume the stolen identity of “E.M.” and front Marrero Construction. OIFP believes the front man posing as E.M., at the behest of the defendants, grossly underreported Marrero Construction’s payroll and represented in insurance filings that Marrero Construction’s primary business was carpentry, not roofing; both declarations reduced the company’s workers’ compensation liability by more than 97 percent, from approximately $350,000 to $9,413.

The state is further alleging that Marrero Construction did not file income tax returns for the years of 2010 and 2011 and thus the company and its actual owners, Saenz and Umana, owe the state $250,385 in back taxes, fees and interest.

OIFP located the actual E.M. in Florida and believes the man did not have knowledge of the alleged crimes that were perpetrated in his name.

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 a criminal fine of up to $150,000, while third-degree crimes carry a maximum sentence of five years in prison and a fine of up to $15,000. Four-degree crimes carry prison of sentences up to 18 months and a fine of up to $10,000.

Deputy Attorneys General Bradford Muller and Michael Locke presented the case to the grand jury. Detective Nathalie Brotherston led the investigation and was assisted by Detectives Ryan Kirsch, Taryn Seidner, Grace Rocca, Suzanna Lopez, Megan Flanagan and Analysts Theresa Worthington and Bethany Schussler. Chillemi also thanked the New Jersey Division of Taxation and Supervising Auditor Michael Mullane; U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI); Orange County (Fla.) Sheriff’s Office; and New Jersey Manufacturer’s Insurance.

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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