13 Charged in 'Biggest' Phony Car-Crash Case: Investigators Say 2003 Scam Bilked Insurers Out of More Than $76,000 in Payouts

Jul. 7--LAWRENCE -- Thirteen people have been charged with auto insurance fraud in connection with a staged accident in May 2003 in North Andover that resulted in more than $76,000 in insurance company payouts.

"This is the most people we've charged in connection with any one accident since we started cracking down on insurance fraud," Lawrence police Chief John Romero said.

"Ten was the previous high. I think this is a pretty good indicator that after six years we're not going to let up on this issue."

The latest case brings to 386 the number of individuals who have been charged with auto insurance fraud since Romero assembled a fraud task force in the fall of 2003 after the death of a 65-year-old great-grandmother in a staged crash she helped plan.

Investigators said they cracked the case when a woman who was involved in the North Andover accident was charged with fraud in a separate accident and told investigators about the other phony crash.

Ten of the 13 charged in the latest case said they were in a 1994 Dodge van that was rear-ended on the Massachusetts Avenue on ramp to Interstate 495 North in North Andover.

One of the 10 was Eustacia Delacruz, 62, of Lawrence.

Delacruz was also charged a year ago in connection with a phony accident in Lawrence in December 2002. She told investigators she was the driver of one of the cars involved in that crash. She also told them that she had been a passenger in the van accident that happened just five months later.

She said none of the people in the van was injured but all took a ride to the hospital to set up injury claims.

Three others involved in the van accident -- including the driver -- corroborated Delacruz's story, police said.

They identified Pascual Garcia, also known as Pasquel Vasquez and Cesar Garcia-Vasquez, as the "runner" who organized the crash.

Garcia, 41, of 28 Texas St., Lawrence, was indicted in 2004 by a special grand jury investigating insurance fraud and has been charged in with several other accidents investigated by the task force.

One of the confessed participants said that after the accident Garcia took the participants to the Lawrence law offices of Charles Lonardo -- one of two Lawrence lawyers who went to jail for insurance fraud.

All of the van passengers were treated at clinics operated by Alan Cohen, one of three chiropractors who went to jail after being convicted of insurance fraud charges stemming from the 2004 grand jury probe.

Police are still looking for Garcia, who faces additional fraud charges.

Also charged in connection with the North Andover accident:

Franklyn Grullon, 32, also of 28 Texas Ave., Lawrence, the owner of the van. He is still being sought by police.

Gualberto Rodriguez, 48, 78 Park St., Lawrence, who owned and drove the 1989 Toyota Corolla that rear-ended the van. Police are still looking for him.

Jesus Reyes, 36, 104 Howard St., Lawrence, driver of the van. He admitted that Garcia offered him $50 to drive it. Police say he has filed a dozen other insurance claims.

Ana Valejo, 51, 321 Hampshire St., Lawrence, a passenger in the van; still being sought by police.

Hector Melendez, 24, 186 Spruce St., Lawrence, a passenger in the van. He is cooperating with investigators.

Warner Fabian, 25, 6 Washington Court, Methuen, a passenger in the van.

Yarin Pizarro, 40, 17 Annis St., Methuen, a passenger in the van; still being sought.

Flor Ledesma, 52, 51 Auburn St., Lawrence, a passenger in the van; still being sought.

Enoy Marcos Naveo, 26, 96 Boston St., Methuen. He was listed as a passenger in the van but told investigators, with whom he is cooperating, that he was not in the vehicle.

Jesus Marquez, 33, 26 Summer St., Lawrence, passenger in the van; still being sought.

Gladisela Jimenez, 32, 7 Platt Court, Lawrence, a passenger in the van.

The fraud task force includes investigators of the Insurance Fraud Bureau of Massachusetts and a handful of city detectives. They work closely with the Essex District Attorney's Office, the state Attorney General's Office and investigators of several insurance companies that do business in Lawrence.