4
QUEENS WEEKLY, JULY 28, 2019
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20 Queens towing
companies engaged in fraud
A tow truck is towed away during an illegal parking crackdown conducted by the 104th
Precinct in Maspeth on Feb. 2-3, 2017 Photos via Twitter/@NYPD104Pct
BY BILL PARRY
Tow truck operations
are taking New Yorkers for
a ride, according to the city
Department of Consumer
and Worker Protection.
The watchdog agency
is currently in the process
of notifying 20 tow truck
company licensees in
Queens that they are among
130 operations citywide that
are suspected of widespread
fraud in the industry. None
of the companies have
been identified publicly by
the department.
An in-depth
investigation suggests that
a quarter of all licensees in
the five boroughs may have
engaged in widespread
insurance and workers’
compensation fraud and
the agency expects to
name the operations in the
coming days.
“The tow truck industry
already has a reputation
for predatory practices
and our investigation has
led up to believe that they
are also putting both their
customers and workers at
risk with falsified insurance
and workers’ compensation
d o c u m e n t a t i o n , ”
Department of Consumer
and Worker Protection
Commissioner Lorelei
Salas said.
The ongoing and
lengthy legal investigation
investigation into the tow
truck industry suggests
various acts of fraud
including submitting
fraudulent certificates
of liability insurance,
having less insurance than
indicated on their license
application and as required
by law, falsely listing
someone other than the
true owner of the company
as the owner of the tow
truck company, submitting
fraudulent insurance ID
cards, and claiming to have
insurance policies and/
or workers’ compensation
coverage that doesn’t exist.
DCWP currently licenses
512 tow truck companies. A
tow truck company license
is required if a business
moves or removes disabled,
illegally parked, or
abandoned motor vehicles
or vehicles involved
in collisions.
As part of the application
process, companies must
have personal and property
liability insurance for tow
trucks and submit a copy of
their insurance certificate.
Licensees must notify
DCWP within 10 days if
their insurance policy is
cancelled, expires, or is
terminated for any reason.
Companies must also
provide proof of workers’
compensation insurance or
a certificate of exemption
if they are not required
to maintain it. “These
companies not only
potentially committed
fraud but endangered to
public and their workers,”
Salas said. “We will do
everything in our power to
shut them down.”
The notices will inform
the companies of their right
to meet with the DCWP to
defend the charges in the
notice before the agency
renders its final decisions.
Following the meetings,
DCWP will consider the
evidence and arguments
presented and make
their final determination
about revocation.
Companies who
do not respond to the
notice will have their
licenses revoked.
Reach reporter Bill
Parry by email at bparry@
schnepsmedia.com or by
phone at (718) 260–4538.
/schnepsmedia.com