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Pennsylvania Man Sentenced for Insurance Fraud After Staging Motor Vehicle Accident

Information reaching us has it that a Pennsylvania man was sentenced to 180 days in the Essex County Correctional Facility as a condition of probation for committing insurance fraud when he staged a motor vehicle accident in Newark, New Jersey.

James E. Payne of Wilkes Barre, Pennsylvania, must also pay $13,577.17 in restitution under a sentence handed down by Superior Court Judge Michael A. Petrolle in Essex County on Monday.

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In July 2019, Payne made a fraudulent claim to Liberty Mutual when he reported his insured vehicle was the subject of a hit and run accident, when in reality, Payne staged the accident. In May 2021, he pleaded guilty to third-degree insurance fraud in connection with payouts on the claim.

“Insurance fraud is a crime that costs insurance providers and drives up premiums for honest policyholders,” said Acting New Jersey Attorney General Andrew J. Bruck in a press release issued by his office. “When you exploit the insurance system for your personal profit, we will hold you accountable.”

Source: New Jersey Office of The Attorney General

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