TRENTON – Attorney General Christopher S. Porrino and the Office of the Insurance Fraud Prosecutor (OIFP) announced today that a former U.S. Postal Service (USPS) worker from Hudson County has been sentenced to three years in prison for illegally obtaining personal information of USPS employees and customers and using the information to commit insurance fraud and other crimes.
Kayson Allen, 33, of Jersey City, was sentenced in accordance with a plea agreement reached when he pleaded guilty to trafficking in personal identifying information in August. He must also pay $11,464 in restitution to two insurance companies under the terms of the sentence handed down by Superior Court Judge Timothy Lydon in Mercer County.
Allen admitted that while working the night shift as a janitor at the USPS Processing and Distribution Center in Trenton, he rifled through office files and trash cans to obtain names, birthdates, and other personal identifying information of postal employees, applicants, and customers doing business at the postal facility. He then used the information to create fake IDs, file fraudulent insurance claims, and open bank accounts in the names of his victims.
“The defendant used his position as a federal employee to victimize people who believed their personal information was safe in the hands of the US Postal Service,” said Attorney General Porrino. “His prison sentence sends a message that we will not allow criminals to commit illegal acts behind the stolen identities of honest individuals.”
“Identity theft is crime that can ruin people’s lives before they’re even aware they’ve been targeted,” said Acting Insurance Fraud Prosecutor Christopher Iu. “We will continue to work with fellow law enforcement agencies to shut down those who abet this crime by trafficking in the personal identification of others.”
The investigation into Allen’s criminal activity began when he was stopped by US Customs and Border Protection officers while trying to re-enter the United States after a one-day trip to Canada in September 2013. A subsequent investigation revealed that Allen possessed more than 50 documents containing personal identifying information of other individuals, including Social Security numbers, falsified drivers licenses, insurance policy applications, bills and bank account information. The case was subsequently referred to the Office of Insurance Fraud Prosecutor.
The OIFP investigation revealed that Allen falsely assumed the identity
of three postal workers and another person to obtain four fraudulent insurance policies in their names.
The investigation further revealed that he submitted a false claim on each of the policies for thefts that never occurred:
- A claim filed with American Bankers Insurance Company of Florida seeking $7,750 for jewelry purportedly stolen during a robbery in Camden, N.J.
- A claim filed with American Bankers Insurance Company of Florida seeking $1,387 for an iPhone and a “Joe Rodeo” watch purportedly stolen in Clearwater, Florida.
- A claim filed with Ameriprise Auto & Home Insurance seeking approximately $2,800 for a watch and money purportedly stolen in Tampa, Florida.
- A claim filed with Jewelers Mutual Insurance Company seeking $2,327 for a gold rope chain and medallion purportedly stolen in Niagara Falls.
All but the claim to Ameriprise Auto & Home Insurance were paid.
Under the terms of Allen’s sentence, he must make restitution to American Bankers Insurance Company of Florida in the amount of $9,137 and to Jewelers Mutual Insurance Company in the amount of $2,327.
Deputy Attorney General Colin Keiffer represented the State at sentencing. Detectives Megan Flanagan and Kristi Procaccino coordinated the investigation with assistance from Assistant Bureau Chief Christina Runkle, Detective Kahlil McGrady, and analyst Theresa Worthington.
Attorney General Porrino thanks United States Customs and Border Protection, the Department of Homeland Security, the United States Postal Service’s Office of the Inspector General, and the National Insurance Crime Bureau for their assistance in the investigation.
Acting Insurance Fraud Prosecutor Iu 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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