After admitting to his involvement in a staged accident scam that defrauded five insurers out of more than $1 million, Joseph Demme had his day in court.

Needless to say, it didn't go so well for the 67-year-old Utica, New York resident, who pleaded guilty to conspiracy to commit mail fraud. The court sentenced Demme to 15 years in prison and ordered him to $1.4 million in restitution. In addition to the prison sentence, Demme received three years of post-release supervision.

The third of five participants to be sentenced, Demme admitted to helping arrange an auto accident in which one defendant deliberately drove a rented Ryder truck into a parked van. As a result of the 2006 scam, the participants netted more than $1 million after filing several fraudulent insurance claims. Old Republic, Geico, Progressive, Mutual of Omaha and Metropolitan were among the insurers who doled out payments to which the conspirators were ultimately not entitled.

The FBI and the IRS Criminal Investigation Unit operating out of Syracuse, New York launched the investigation that led to the five arrests. Earlier this year, two other defendants were sentenced: In February 2013, Cindy Morgan, 56, received 27 months in prison, while Joseph Dellerba, 66, received 30 months. The two remaining defendants—David Morgan and Michael Matrulli—currently await sentencing.

Special Reports /

Third of Five New Yorkers Sentenced in $1M Auto Scam

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