N.Y. CRACKS FRAUD RING:

New York officials are hailing the arrest of 24 individuals alleged to have been involved in an auto insurance fraud operation they say has ties to organized crime. New York City Police Commissioner Raymond W. Kelly, Kings County District Attorney Charles J. Hynes and New York State Insurance Department Superintendent Gregory V. Serio announced the takedown of “Operation Family Ties,” which targeted an automobile insurance fraud ring operating from an auto salvage yard in Brooklyn. Police said the investigation took three years. They also said the 24 individuals included three organized crime figures with ties to the Gambino and Bonanno crime families. The investigation began in late 2001 when officers identified Flatlands Auto Sales as a key component in numerous owner initiated insurance frauds. In this type of fraud, car owners voluntarily “give up” their car to individuals who dismantle the vehicle and sell the parts. Once the parts are sold and the hulk of the car destroyed, the owner reports the car stolen and collects a reimbursement from the insurance company. Among those arrested are the operators of the salvage yard, buyers of the stripped auto parts and 16 individuals who owned high-end vehicles that were given-up during the course of the investigation. The cars have an estimated value of $1.5 million.