By Sarah Moskowitz
The bureau became involved when four insurance companies alleged the men had fraudulently inflated payments on insurance claims. Progressive Insurance, based in Mayfield Village, OH, made more than half of the accusations. If convicted, the men could face up to seven years in prison.
The two employees at Five Star Collision, at 163 Earle Ave., were arraigned Tuesday, Jan. 7 in First District Court in Hempstead. Owner and operator Gregory DiMaria, 38, of North Babylon, is charged with 23 felonious counts of insurance fraud, grand larceny and falsifying business records and manager Frank Chaimowitz, 30, of Coram, is charged with 21 counts.
"Five Star Collision has fixed thousands of vehicles for the past 10 years with an excellent level of service and satisfied customers," said DiMaria in a written statement. "The allegations...are based on an insurance company that has the worst reputation on customer satisfaction...Because we stand up for the customers' rights, myself and my manager were falsely accused and targeted."
DiMaria added in an interview that neither he, his business nor its employees have ever been accused of fraud in their 10 years of business.
Nine cars that were serviced by Five Star between October 1999 and June 2002 are the basis for the indictment. Four insurance companies accused Five Star of enhancing damage on vehicles brought to their shop to collect more insurance money than the original damage was worth, or for failing to complete the job, according Stephani Meister, assistant district attorney in the Criminal Frauds Bureau.
The allegations sparked an investigation by the Fraud Unit at the Nassau County District Attorney's office in collaboration with the New York State Insurance Frauds Bureau and the New York State Department of Motor Vehicles.
In response to the accusations, Five Star and several undisclosed body shops, including one in Valley Stream, have filed a lawsuit against the insurance companies. DiMaria said that all customers who own the nine cars are involved in the pending suit.
DiMaria and Chaimowitz are charged with four counts of insurance fraud in the third degree, three counts of grand larceny in the third degree, one count of scheme to defraud in the first degree, two counts of insurance fraud in the fourth degree, eight counts of falsifying business records in the first degree, two counts of insurance fraud in the fifth degree and one count of petit larceny.
DiMaria and Five Star Collision are additionally charged with one count of insurance fraud in the third degree and one count of falsifying business records in the first degree.
Five of the claims of insurance fraud were made by Progressive Insurance. The company estimates that Five Star's damage enhancements in these incidents exceeded $10,000, according to Meister. Progressive Insurance declined to elaborate on the specifics of their complaints.
"We cannot be disclosing this level of detail at this point in the case," said Leslie Kolleda, spokeswoman for Progressive Insurance.
In addition to Progressive's claims, two complaints originated from USAA Insurance for more than $11,000 in undone work, one from CGU Insurance for more than $3,000 for replacing an allegedly undamaged custom-made bar on a Lincoln Town Car and one from Liberty Mutual Insurance for $2,000 worth of undone repairs on a Jeep Cherokee.
DiMaria said Five Star has serviced thousands of customers without complaint over the years and that major insurance companies have never had a problem with them in the past.
"These accusations are being based from a small company that is not reputable," said DiMaria. "Nothing that they accused here is of any evidence whatsoever."
Five Star's next court date is Jan. 30.
