According to New York prosecutors, Mayne is not an insurance broker, but he used his position and contacts at various car dealerships throughout Brooklyn to dupe unsuspecting car buyers into believing that he was an insurance broker capable of obtaining car insurance. The government alleged that Mayne stole thousands of dollars from victims who were tricked into paying him insurance premiums for purported insurance policies.
Mayne was charged with one count of scheme to defraud in the first degree and two counts of grand larceny in the fourth degree.
Fraudulently Posed as a Licensed Insurance Broker
“This defendant allegedly victimized unsuspecting consumers by fraudulently posing as a licensed insurance broker in an effort to line his pockets with thousands of dollars in ill-gotten gains,” said the acting superintendent of the New York State Department of Financial Services (DFS), Linda A. Lacewell.
“All New Yorkers pay a price for insurance fraud, which drives up premiums across the board,” said New York State Attorney General Letitia James. “This alleged scheme led unsuspecting customers to believe that they had legitimate auto insurance, only to later find their policies suddenly cancelled. My office will prosecute anyone who breaks the law to take advantage of consumers for personal profit.”
In New York State, insurance agents and brokers are licensed and regulated by the DFS. According to the felony complaint, DFS records indicated that Mayne was not, and never has been, licensed in any capacity under any section of the New York Insurance Law.
Elaborate Scheme to Steal Money
According to the felony complaint and statements made by the prosecutor at arraignment, Mayne demanded thousands of dollars from victims and then duped them into believing that they had purchased automobile insurance policies when, in fact, it was an elaborate scheme to steal their money.
Specifically, Mayne allegedly took money from victims for purported insurance premium payments, but instead of paying insurance carriers, he would obtain temporary insurance cards using fictitious banking information, and then allow the policies to cancel shortly thereafter for lack of payment.
If convicted of the top counts charged, Mayne faces up to 1 1/3 years to four years in prison.
Steven A. Meyerowitz, Esq., is director of the Insurance Coverage Law Center (formerly FC&S Legal). He can be reached at email@example.com.