Is Hochul the unlikely hero of Adams’ world indictments?
#Kathy Hochul #auto insurance reform #fraud scheme #Eric Adams #budget negotiations #car crash lawsuits #indictments #Southern District of New York
📌 Key Takeaways
- Gov. Kathy Hochul is pushing auto insurance reforms to limit lawsuits and reduce costs, a key budget negotiation issue.
- Federal prosecutors indicted a close friend of former Mayor Eric Adams in a car-crash fraud scheme, aligning with Hochul's reform goals.
- Hochul's office claims her proposed reforms would have prevented such fraud by strengthening enforcement and investigation time.
- The indictments provide timely political leverage for Hochul to advance her insurance agenda amid legislative resistance.
📖 Full Retelling
FRAUDTUITOUS: Gov. Kathy Hochul has spent the last four months beating the auto-insurance affordability drum and fighting the trial lawyers and unconvinced lawmakers who stand in her way.
She’s proposing limiting the ways car crash victims — especially those deemed at fault for the collision — can sue for damages, a move she says will cut the cost of auto insurance. She also wants to target insurance fraud and staged crashes.
It’s been a massive sticking point in negotiations to finish her now-late budget.
“If, God forbid, you are the majority reason that there's an accident, you will no longer be entitled to pain and suffering,” Assembly Speaker Carl Heastie told reporters Wednesday. “That's a pretty serious thing for people to accept. I mean, accidents do happen.”
But as Hochul hopes to draw the Assembly and Senate to her side, it just so happens that federal prosecutors in the Southern District of New York dropped indictments this week targeting a close personal friend of former Mayor Eric Adams and alleging a massive car-crash-victim-fraud scheme.
Perfect! Timing!
"This alleged scheme is exactly the type of fraud Governor Hochul's auto insurance reforms are designed to curb in New York State,” Hochul spokesperson Kristin Devoe told Playbook in a statement.
Her office is arguing that the scheme might never have happened had Hochul’s proposed changes been in place.
"The Governor's proposals would strengthen enforcement, allow more time to investigate suspected fraudulent claims and crack down on the networks and providers that make this type of fraud possible in the first place,” Devoe said.
Our colleague Chris Sommerfeldt reported this morning that federal prosecutors dropped a superseding indictment Thursday in their fraud case against Zhan “Johnny” Petrosyants, the man who hobnobbed, dined and clubbed with Adams during his tenure, as Hizzoner tested New York City’s nightlife “product.” The superseder alleged businessmen V
🏷️ Themes
Political Strategy, Insurance Fraud
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Original Source
FRAUDTUITOUS: Gov. Kathy Hochul has spent the last four months beating the auto-insurance affordability drum and fighting the trial lawyers and unconvinced lawmakers who stand in her way.
She’s proposing limiting the ways car crash victims — especially those deemed at fault for the collision — can sue for damages, a move she says will cut the cost of auto insurance. She also wants to target insurance fraud and staged crashes.
It’s been a massive sticking point in negotiations to finish her now-late budget.
“If, God forbid, you are the majority reason that there's an accident, you will no longer be entitled to pain and suffering,” Assembly Speaker Carl Heastie told reporters Wednesday. “That's a pretty serious thing for people to accept. I mean, accidents do happen.”
But as Hochul hopes to draw the Assembly and Senate to her side, it just so happens that federal prosecutors in the Southern District of New York dropped indictments this week targeting a close personal friend of former Mayor Eric Adams and alleging a massive car-crash-victim-fraud scheme.
Perfect! Timing!
"This alleged scheme is exactly the type of fraud Governor Hochul's auto insurance reforms are designed to curb in New York State,” Hochul spokesperson Kristin Devoe told Playbook in a statement.
Her office is arguing that the scheme might never have happened had Hochul’s proposed changes been in place.
"The Governor's proposals would strengthen enforcement, allow more time to investigate suspected fraudulent claims and crack down on the networks and providers that make this type of fraud possible in the first place,” Devoe said.
Our colleague Chris Sommerfeldt reported this morning that federal prosecutors dropped a superseding indictment Thursday in their fraud case against Zhan “Johnny” Petrosyants, the man who hobnobbed, dined and clubbed with Adams during his tenure, as Hizzoner tested New York City’s nightlife “product.” The superseder alleged businessmen V
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