January 23, 2008

Attorney General Corbett announces arrest of six New York residents linked to insurance fraud & illegal school bus business in Brooklyn

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Benito Berrios Sr.

Maria Hernandez

Benito Berrios Jr.

Deana Berrios

Melissa Berrios

Donna Berrios

HARRISBURG - Attorney General Tom Corbett today announced that agents from the Attorney General's Insurance Fraud Section have filed criminal charges against six New York residents accused of conspiring to use a Pennsylvania address to falsely obtain Pennsylvania driver's licenses, vehicle registrations and insurance coverage for a total of 14 vehicles - including vans linked to an illegal school bus operation in Brooklyn, NY.

Corbett said all six defendants are family members:  Benito Berrios Sr., 61, and his long-time companion, Maria Hernandez, 56; two adult children - Benito Berrios Jr., 40 and Deana Berrios, 36; and two daughters-in-law of Barrios Sr., Melissa Berrios, 31, and Donna Berrios, 25.  All six reside in Brooklyn, NY.

Corbett said the defendants allegedly conspired to use an address in Tobyhanna, Monroe County, in order to fraudulently obtain Pennsylvania drivers licenses, as well as to secure PA registrations and insurance for numerous personal vehicles - evading substantially higher insurance rates, had the vehicles been licensed in Brooklyn. 

Additionally, Corbett said that the defendants allegedly used several vans, licensed and insured in Pennsylvania, to regularly transport school students in Brooklyn - despite clearly stating on PA title, registration and insurance documents that the vehicles would be used exclusively for personal, non-commercial purposes, and would be used primarily in Monroe County.

"Insurance fraud and bogus vehicle registration schemes take money directly from the pockets of every law-abiding consumer and jeopardizes the safety of unsuspecting motorists and passengers," Corbett said. "We will not allow Pennsylvania to serve as a 'safe haven' for scam artists attempting to elude higher insurance rates or vehicle safety requirements from other states."

According to the criminal complaint, investigators from the New York Department of Transportation cited Maria Hernandez and Deana Berrios on December 19, 2007, who were the registered owners of Pennsylvania-licensed vans which were observed transporting school children in Brooklyn.  Both women were cited with various New York violations related to the operation of an illegal school bus service.

Corbett said the defendants allegedly conspired to use the address of a weekend home in Monroe County, owned by Benito Berrios Jr., in their applications for Pennsylvania driver's licenses, in order to support false claims of PA residency for insurance purposes. 

Additionally, the defendants allegedly conspired to use the same false address information to obtain Pennsylvania titles and registrations for their vehicles, including vehicles used as school busses, in an effort to avoid higher insurance rates, safety inspections and other requirements in New York.

Corbett said the defendants were taken into custody today by agents from the Attorney General's Insurance Fraud Section following their surrender at the Pocono Mountain Police Department. 

The defendants are all charged with one count each of criminal conspiracy, insurance fraud (fraudulent vehicle registrations), theft by deception and tampering with public records, all third-degree felonies punishable by up to seven years in prison and a $15,000 fine.

Each of the defendants is also charged with one count of false application for a certificate of title or registration, a first-degree misdemeanor punishable by up to five years in prison and a $10,000 fine, along with one count of insurance fraud (fraudulent insurance application) and one count of unsworn falsifications to authorities, both third-degree misdemeanors punishable by up to one year in prison and a $2,500 fine.

The defendants were preliminarily arraigned before Tobyhanna Magisterial District Judge Anthony Fluegel and released on $25,000 unsecured bail.  Preliminary hearings are scheduled for February 1, 2008, before Magisterial District Judge Fluegel.

Corbett said the case will be prosecuted in Monroe County by Senior Deputy Attorney General Gregg Shore of the Attorney General's Insurance Fraud Section.

(A person charged with a crime is presumed innocent until proven guilty.)

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