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Moustapha Lo stated vehicles operated from Newton, not Brooklyn

A Brooklyn limousine and taxi company owner has been charged in a state grand jury indictment for allegedly registering and insuring his vehicles in New Jersey under false pretenses in order to obtain cheaper auto insurance.

Moustapha Lo, 43, is charged with second-degree insurance fraud, three counts of third-degree theft by deception and three counts of third-degree theft by failure to make required disposition of property received, state Attorney General Jeffrey S. Chiesa said Wednesday.

At the time of the alleged crime, Lo was the owner and manager and registered agent of Safe & Fare Transportation Inc. in Newton. The company has an alternate or associated name of Futa Transportation with the same address as Safe & Fare. Lo was also the owner and manager of Allo Taxi Limited Liability Co. also located in Newton.

The indictment alleges that between Oct. 31, 2007, and Jan. 28, 2008, Lo made fraudulent or misleading statements in initial commercial auto insurance policy applications and in at least five separate insurance policy change request forms by providing false information to Progressive/National Continental Insurance Co.

It is alleged that Lo fraudulently claimed that the vehicles he registered under his New Jersey corporations were garaged and operated in Newton, when in fact, they were garaged and operated in New York. It is alleged that, as a result, Lo fraudulently obtained lower premium rate payments to which he was not entitled.

The indictment also alleges that Lo fraudulently obtained $17,537 in premium money from a customer and made the false impression that monthly cash payments paid to his company, Futa, were forwarded to Allstate New Jersey Insurance Co. as payments for the customer’s 2000 Lincoln Town Car. It is alleged that in the same manner, he fraudulently obtained premium payments of $16,300 from a second customer paid to his company, Safe & Fare, which were to be forwarded to National Continental Insurance Co. for the customer‘s 1999 Toyota Sienna, as well as fraudulently obtaining $14,400 in premium payments from a third customer, which were paid to Safe & Fare and were to be forwarded to Lincoln General Insurance Co. for the customer‘s 1997 Chevrolet Astro. It is alleged that, in all three instances, Lo allowed the three automobile policies to lapse for non-payment and kept the cash payments for himself.

Second-degree crimes carry a maximum punishment of 10 years in state prison and a criminal fine of $150,000, while third-degree crimes carry a maximum punishment of five years in prison and a criminal fine of $15,000.

Deputy Attorney General Carlos A. López and Det. Scott Stevens were assigned to the investigation. Lopez is prosecuting the case.

—TOM HESTER SR., NEWJERSEYNEWSROOM.COM