Passaic Seen As 'Fraud Central'

Passaic County in New Jersey has become known as a hotbed of auto insurance fraud, but the people who deal with these cases say it is just a matter of time before the county loses that reputation. "Within two to three years Passaic will lose its identification as ‘Fraud Central, New Jersey,’" predicted Tom Fatzyntz with State Farm Mutual Auto Insurance Company. Mr. Fatzyntz, a special investigative unit section manager for the Bloomington, Ill., company’s Wayne, N.J., office, also cautioned that it is easy to make the location "a scapegoat," noting that what is going on in Passaic is "being identified everywhere." "We have become aware that the number of staged accidents is decreasing in the county," said Arthur Margeotes, the Passaic County chief assistant prosecutor in charge of auto insurance fraud. "It has not stopped, but moved to other parts of the state."