'Ring-leader' of New York-to-Massachusetts car insurance fraud scheme held on $100,000 bail in Greenfield court



Arraignments were held in Franklin Superior Court for 12 individuals arrested on charges of insurance fraud. Living in New York, they were registering cars in Western Massachusetts towns. (Don Treeger / The Republican)
Don Treeger | dtreeger@repub.com

By Fred Contrada | fcontrada@repub.com
August 22, 2014 at 9:11 PM, updated August 22, 2014 at 9:24 PM

CRIME AND COURTS






Updates "1st wave of car insurance fraud defendants from New York arraigned in 'largest ring busted in Western Massachusetts,' " posted Friday, Aug. 22 at 7:43 p.m.
GREENFIELD — A Taiwan native alleged to be the ring-leader of the biggest car insurance fraud operation in Western Massachusetts history was ordered held on $100,000 bail Friday after pleading not guilty Friday to more than 100 charges.

Le Fen "Helen" Chen, 55, ran the operation out of her apartment in Flushing, N.Y., defrauding insurance companies out of more than $100,000, according to Northwestern First Assistant District Attorney Steven Gagne. According to Gagne, Chen accompanied vehicle owners from New York to insurance agencies in Western Massachusetts, assisted them in filling out their applications and vouched for the false addresses they gave in Northampton, Greenfield and Easthampton.

Chen is the subject of 138 of the 289 indictments handed down this month by a Hampshire County grand jury. A dozen other defendants, including her ex-husband, were arraigned in Franklin Superior Court on Friday. More, mostly Chinese natives, are expected to be rounded up by law enforcement.

Defense lawyers for those arraigned Friday said their clients are innocent victims of Chen's scheme, participating after they answered an ad in a Chinese language newspaper that guaranteed them lower insurance rates.

At Gagne's request, Josephson set bail at $50,000 for Hsin Hsia, 55, also of Flushing, whom Gagne described as Chen's husband. His lawyer, Robert Raymond, told Josephson however that the two have been divorced for 10 years, although they have a 20-year-old son and live at the same address.

Gagne said police executing a search warrant at the apartment found seven boxes filled with drivers' licenses, Social Security cards, passports and post office box keys. Records show that $123,000 passed through Chen's accounts at Florence Savings Bank, Gagne said.

"This scheme is long-ranging and multi-faceted," he said.

Gagne told the judge that Chen came to the U.S. in 1990 on a tourist visa that has since expired. U.S. Customs and Immigration Enforcement wants Chen held, he said, arguing for $250,000 cash bail.

"Anything short of that, I don't think we're going to see her again," he told Josephson.

http://www.masslive.com/news/index.s...nce_fraud.html