Serial Fraudster Loses Request to Shorten Supervised Release
Post 4976
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Defendant Frank Capozzi, acting as his own lawyer, filed a letter-motion requesting early termination of his supervised release approximately 18 months into his 36-month term of supervised release.
In United States Of America v. Frank J. Capozzi, No. 3:16-CR-347, United States District Court, M.D. Pennsylvania (January 13, 2025) the USDC rejected the motion.
ANALYSIS
The primary purpose of supervised release is to facilitate the integration of offenders back into the community rather than to punish them. Congress has provided the sentencing court with the authority to terminate a defendant’s term of supervised release early pursuant to 18 U.S.C. § 3583(e).
The factors the court must consider include:
1. the nature and circumstances of the offense and the defendant’s history and characteristics;
2. the need to afford adequate deterrence to criminal conduct, protect the public from further crimes of the defendant, and provide him with needed educational or vocational training, medical care, or other correctional treatment in the most effective manner;
3. the kinds of sentence and sentencing range established for the defendant’s crimes;
4. pertinent policy statements issued by the United States Sentencing Commission;
5. the need to avoid unwarranted sentence disparities among defendants with similar records who have been found guilty of similar conduct; and
6. the need to provide restitution to any victims of the offense.
In the present case, on September 11,2019, Defendant Capozzi pleaded guilty to Counts 1 and 7 of the Indictment, specifically Conspiracy to Defraud the Government with Respect to Claims and Aggravated Identity Theft and Aiding and Abetting the same.
Conspiracy to Defraud the Government with Respect to Claims and Aggravated Identity Theft and Aiding and Abetting the same.
Capozzi’s convictions included his involvement in an extensive scheme from 2010 to 2014 to defraud the Department of the Treasury through the filing of false income tax returns. The falsified tax returns often used the identities of individuals, many of whom were incarcerated, who had no knowledge that returns were being filed in their name.
Since the age of 19 the most recent convictions prior to the commencement of the instant case in 2016 include a state court conviction in 2013 for “Fraud in Completing Insurance Claims; Insurance Fraud; Theft by Deception; and Conspiracy – Theft by Deception” due to Capozzi’s submission in 2011 of false employment information to Allstate Insurance to receive disability benefits to which he was not entitled.
On September 9, 2020, the USDC sentenced Capozzi to a term of incarceration of 70 months, to be followed by a term of supervised release of 3 years. Capozzi began his three-year term of supervised release in mid-2023 and has now served approximately 20-months of his supervised release term. Capozzi moved for early termination of his supervised release.
Capozzi presented little evidence that “new or unforeseen circumstances” have arisen warranting the early termination of Defendant’s supervised release.
Capozzi’s history and characteristics, and in particular his history of engaging in various types of fraudulent activity since 2010, as evidenced by his convictions in the current action as well as those in 2013 and 2014, weigh against early termination of his supervised release and demonstrate a need for continued supervision.
Defendant Capozzi’s letter-motion requesting early termination of his supervised release was denied.
ZALMA OPINION
Mr. Capozzi was a seasoned fraudster whose schemes cheated the government, the public and the insurance industry out of millions of dollars. His last conviction put him in jail for 70 months and 36 months of Supervised Release (parole). He asked the court to let him free of the supervised release but without sufficient evidence. He was a serious criminal and every time he was jailed he came out and committed more fraudulent crimes and sought mercy without any hope he will not commit more fraud.
(c) 2025 Barry Zalma & ClaimSchool, Inc.
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Jury’s Findings Interpreting Insurance Contract Affirmed
Post 5105
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Madelaine Chocolate Novelties, Inc. (“Madelaine Chocolate”) appealed the district court’s judgment following a jury verdict in favor of Great Northern Insurance Company (“Great Northern”) concerning storm-surge damage caused by “Superstorm Sandy” to Madelaine Chocolate’s production facilities.
In Madelaine Chocolate Novelties, Inc., d.b.a. The Madelaine Chocolate Company v. Great Northern Insurance Company, No. 23-212, United States Court of Appeals, Second Circuit (June 20, 2025) affirmed the trial court ruling in favor of the insurer.
BACKGROUND
Great Northern refused to pay the full claim amount and paid Madelaine Chocolate only about $4 million. In disclaiming coverage, Great Northern invoked the Policy’s flood-exclusion provision, which excludes, in relevant part, “loss or damage caused by ....
Failure to Name a Party as an Additional Insured Defeats Claim
Post 5104
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Contract Interpretation is Based on the Clear and Unambiguous Language of the Policy
In Associated Industries Insurance Company, Inc. v. Sentinel Insurance Company, Ltd., No. 23-CV-10400 (MMG), United States District Court, S.D. New York (June 16, 2025) an insurance coverage dispute arising from a personal injury action in New York State Supreme Court.
The underlying action, Eduardo Molina v. Venchi 2, LLC, et al., concerned injuries allegedly resulting from a construction accident at premises owned by Central Area Equities Associates LLC (CAEA) and leased by Venchi 2 LLC with the USDC required to determine who was entitled to a defense from which insurer.
KEY POINTS
Parties Involved:
CAEA is insured by Associated Industries Insurance Company, Inc. ...
Exclusion Establishes that There is No Duty to Defend Off Site Injuries
Post 5103
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Attack by Vicious Dog Excluded
In Foremost Insurance Company, Grand Rapids, Michigan v. Michael B. Steele and Sarah Brown and Kevin Lee Price, Civil Action No. 3:24-CV-00684, United States District Court, M.D. Pennsylvania (June 16, 2025)
Foremost Insurance Company (“Foremost”) sued Michael B. Steele (“Steele”), Sarah Brown (“Brown”), and Kevin Lee Price (“Price”) (collectively, “Defendants”). Foremost sought declaratory relief in the form of a declaration that
1. it owes no insurance coverage to Steele and has no duty to defend or indemnify Steele in an underlying tort action and
2. defense counsel that Foremost has assigned to Steele in the underlying action may withdraw his appearance.
Presently before the Court are two ...
ZIFL Volume 29, Issue 10
The Source for the Insurance Fraud Professional
See the full video at https://lnkd.in/gK_P4-BK and at https://lnkd.in/g2Q7BHBu, and at https://zalma.com/blog and at https://lnkd.in/gjyMWHff.
Zalma’s Insurance Fraud Letter (ZIFL) continues its 29th year of publication dedicated to those involved in reducing the effect of insurance fraud. ZIFL is published 24 times a year by ClaimSchool and is written by Barry Zalma. It is provided FREE to anyone who visits the site at http://zalma.com/zalmas-insurance-fraud-letter-2/ You can read the full issue of the May 15, 2025 issue at http://zalma.com/blog/wp-content/uploads/2025/05/ZIFL-05-15-2025.pdf
This issue contains the following articles about insurance fraud:
Health Care Fraud Trial Results in Murder for Hire of Witness
To Avoid Conviction for Insurance Fraud Defendants Murder Witness
In United States of America v. Louis Age, Jr.; Stanton Guillory; Louis Age, III; Ronald Wilson, Jr., No. 22-30656, United States Court of Appeals, Fifth Circuit (April 25, 2025) the Fifth Circuit dealt with the ...
Professional Health Care Services Exclusion Effective
Post 5073
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This opinion is the recommendation of a Magistrate Judge to the District Court Judge and involves Travelers Casualty Insurance Company and its duty to defend the New Mexico Bone and Joint Institute (NMBJI) and its physicians in a medical negligence lawsuit brought by Tervon Dorsey.
In Travelers Casualty Insurance Company Of America v. New Mexico Bone And Joint Institute, P.C.; American Foundation Of Lower Extremity Surgery And Research, Inc., a New Mexico Corporation; Riley Rampton, DPM; Loren K. Spencer, DPM; Tervon Dorsey, individually; Kimberly Dorsey, individually; and Kate Ferlic as Guardian Ad Litem for K.D. and J.D., minors, No. 2:24-cv-0027 MV/DLM, United States District Court, D. New Mexico (May 8, 2025) the Magistrate Judge Recommended:
Insurance Coverage Dispute:
Travelers issued a Commercial General Liability ...
A Heads I Win, Tails You Lose Story
Post 5062
Posted on April 30, 2025 by Barry Zalma
"This is a Fictionalized True Crime Story of Insurance Fraud that explains why Insurance Fraud is a “Heads I Win, Tails You Lose” situation for Insurers. The story is designed to help everyone to Understand How Insurance Fraud in America is Costing Everyone who Buys Insurance Thousands of Dollars Every year and Why Insurance Fraud is Safer and More Profitable for the Perpetrators than any Other Crime."
Immigrant Criminals Attempt to Profit From Insurance Fraud
People who commit insurance fraud as a profession do so because it is easy. It requires no capital investment. The risk is low and the profits are high. The ease with which large amounts of money can be made from insurance fraud removes whatever moral hesitation might stop the perpetrator from committing the crime.
The temptation to do everything outside the law was the downfall of the brothers Karamazov. The brothers had escaped prison in the old Soviet Union by immigrating to the United...
