N.J. CONVICTS ON RACKETEERING:

New Jersey Attorney General Peter Harvey announced that a Union County man and a Middlesex County man have been convicted of racketeering and health care claims fraud for their roles in a multi-million dollar staged accident and insurance fraud conspiracy, following a six week jury trial in Union County before Judge John Triarsi. According to Vaughn McKoy, director of the Division of Criminal Justice, Anhuar Bandy, of New Brunswick, Middlesex County, and Elvin Castillo, of Elizabeth, Union County, were convicted of racketeering, conspiracy and multiple counts of health care claims fraud and theft by deception alleged in a grand jury indictment. “These convictions represent the dismantling of one of the largest phony accident rings in the history of the state,” said Harvey. “Aside from stealing money from insurance companies, thereby contributing to higher auto insurance rates, these criminals put at risk the lives and safety of New Jersey’s drivers.” While the investigation uncovered evidence of more than 90 staged accidents and the submission of fraudulent insurance claims exceeding $2 million, the indictment specifically charged Bandy and the co-defendants with the staging of eight phony automobile accidents and the submission of personal injury protection and property damage claims to eight insurance companies seeking in excess of $331,000. McKoy said this marked the first time that the prosecutor brought racketeering charges against defendants in connection with a staged accident ring.