Bus Riders Busted For Insurance Scam

Ten Philadelphia residents who thought they could hit the jackpot by being part of a staged accident with a casino charter bus were arrested yesterday on insurance fraud, conspiracy and theft-by-deception charges, authorities said.

Besides the group taken into custody yesterday, two others who were charged in the ongoing case are to be arrested as well, said Shonna M. Clark, a spokesperson for the Pennsylvania Office of the Attorney General.

According to an affidavit filed in the case, the scheme was unearthed by an investigator for Lancer Insurance of Long Beach, N.Y., which provided coverage for a Wertz Motor Coach company bus that was hired by the scheme's perpetrators.

Attorney General Tom Corbett said in a statement that on April 18, 2004, the bus–chartered to carry passengers from Philadelphia to an Atlantic City casino–was struck by a car at a city intersection.

According to the affidavit, there were 21 passengers listed on the police report. However, Lancer Insurance Company, Wertz's insurer, received insurance claims for 29 individuals.

“This alleged scheme was an elaborate attempt to scam the Wertz Motor Coach and Lancer Insurance out of thousands of dollars,” Mr. Corbett said.

According to the Attorney General's office, an investigation revealed that minutes after departing its pickup location, the bus was struck by an uninsured vehicle, but both vehicles sustained little damage and were drivable from the scene.

Mr. Corbett said 20 of the 21 passengers on the bus immediately reported injuries and were transported by the Wertz bus to the Medical College of Pennsylvania. Lancer eventually received claims for all 21 passengers, plus eight individuals who were not on the bus at the time of the crash. The reported injuries were all “soft tissue” related.

According to the affidavit, most of those making claims after visiting MCP went for treatment at clinics and chiropractic offices, many of which billed Lancer for office visits or treatment that never occurred.

More than $26,000 in bogus insurance claims were paid in total, Mr. Corbett said.

According to the affidavit from Michael A. Veneziale, a special agent with Mr. Corbett's office, the owner of the auto that which hit the bus was a cousin of a bus passenger who sought medical treatment costing more than $4,400.

The agent's affidavit detailed interviews with a number of bus passengers who knew the accident was to be staged, admitted to participating in the scheme and signed statements to that effect.

One rider, Anthony Vereen, according to the affidavit, said, “he was never really injured as a result of the accident, and was thinking he would get some money as a result of the accident and a lawsuit.”

Lancer was billed $5,000 by Disston Chiropractic for 50 treatments allegedly provided to Mr. Vereen from April 19, 2004 to October 25, 2004, the affidavit stated.