The Hartford Sues N.J. Fraud Ring

27-Member Group Staged Auto Accidents, Alleges Lawsuit HARTFORD, Conn., Jan. 14 -- The Hartford today filed suit in Morris County State Court against 27 New Jersey residents. The suit alleges the named defendants conspired to stage motor vehicle accidents and fake injuries to generate hundreds of thousands of dollars in fraudulent claims.

The suit accuses the defendants of intentionally rear-ending cars stopped in traffic or hitting vehicles exiting parking lots or side streets with the intent of filing bodily injury and personal injury protection (PIP) claims. The suit also accuses the defendants of feigning soft-tissue injuries to pocket the insurance money. The series of accidents occurred from the fall of 1999 through the summer of 2000 in Passaic County.

Key figures named in the suit are Moises Berrios and Ivan Alicea. All of the named defendants are linked to each other through shared addresses, accident patterns or ownership of the same vehicles.

``Insurance fraud hurts everyone, affecting everyone's insurance costs,'' said Joseph Koenig, manager of The Hartford's Major Case Team, noting that fraud adds an estimated $200 a year to each family's insurance premiums nationwide. ``We at The Hartford are committed to stopping fraud whenever we find it and bringing the violators to justice.''

According to the lawsuit, all but one of the named defendant policyholders purchased automobile insurance from The Hartford's subsidiary, Twin City Fire Insurance Company, through the same agent. Each paid the premium with travelers' checks issued by the same company. Most of the insured vehicles were older models from the 1980s.

Once insured, various individuals named in the suit staged 10 accidents, mostly in close proximity to the participants' homes. The suit states that several of the defendants, using aliases, were involved in more than one accident. Additionally, the majority of the defendants had a history of similar types of accidents when insured with other carriers.

The Hartford is asking the court for a declaratory judgement that would void the defendants' insurance policies and dismiss the company's obligation to pay the defendants' claims.

The Hartford is one of the nation's largest insurance and financial services companies, with 2000 revenues of $14.7 billion. As of Sept. 30, 2001, The Hartford had assets of $170.6 billion and shareholders' equity of $8.8 billion. The company is a leading provider of investment products, life insurance and group benefits; automobile and homeowners products; commercial property and casualty insurance; and reinsurance.

The Hartford's Internet address is www.thehartford.com.