Utica Man Sentenced in Fraud Case
|U.S. Attorney’s Office February 04, 2013|
United States Attorney Richard S. Hartunian announced today that a Utica man has been sentenced for his role in an insurance and health care fraud scheme.
On January 31, 2013, Joseph Dellerba, age 66, was sentenced by United States District Court Judge Norman A. Mordue in Syracuse. Dellerba was sentenced to 30 months’ imprisonment and ordered to pay restitution in an amount exceeding $1.4 million, with $102,111 due immediately. Dellerba will also serve three years of supervision following his release from incarceration.
Dellerba pled guilty on September 17, 2012, to conspiracy to commit mail and health care fraud. Dellerba admitted that in or about 2005 he agreed with other conspirators to participate in an insurance and health care fraud scheme. The scheme involved a staged motor vehicle accident on Harbor Lock Road in Utica on March 20, 2006. On that date, Dellerba claimed to have been injured while a passenger in a Ford van which was struck by a Ryder truck driven by a co- conspirator. In fact, the collision was staged and Dellerba was not a passenger at the time of the impact. The defendant claimed to have been injured as a result of the accident and submitted false insurance claims, including claims for personal injuries, no-fault benefits, and disability benefits. Dellerba sought medical treatment for non-existent injuries or injuries that were not related to the collision. The bills for this medical care were submitted to and paid by a health care benefit program, specifically an insurance policy issued by Progressive Insurance Company. Dellerba also commenced a civil lawsuit seeking damages for personal injuries sustained in the accident. He received a payment of $682,297.21 to settle that suit.
The case was investigated by the Federal Bureau of Investigation and the New York State Insurance Fraud’s Bureau. The case was prosecuted by Assistant United States Attorney Edward R. Broton.