Crime & Safety

Newark Man Accused of Falsely Reporting Stolen Car to Collect Insurance

Jabbar Y. Mercer, 26, is expected to get five years probation for trying to obtain $45,000 from an insurance company.

An Essex County man pleaded guilty Monday to trying to obtain about $45,000 from an insurance company by falsely reporting the vehicle had been stolen, the Attorney General's Office said.

Jabbar Y. Mercer, 26, of Newark, pleaded guilty to third-degree attempted theft by deception. Sentencing is scheduled for Sept. 15. The Office of the Insurance Fraud Prosecutor is expected to recommend a sentence of five years probation.

Acting Insurance Fraud Prosecutor Ronald Chillemi said there is a presumption under New Jersey law against any sentence of incarceration for a person convicted of a third-degree crime who has not previously been convicted of an indictable offense.

Mercer admitted he falsely reported to the Orange City police on May 12, 2011 his 2006 Mercedes Benz R500 had been stolen, the Attorney General's Office said. An investigation determined Mercer subsequently filed a vehicle-theft claim with IFA Insurance Co. for approximately $45,000. Mercer submitted fraudulent documents and made sworn statements in connection with the claim for reimbursement, according to the Attorney General's Office.

The investigation by the Office of the Insurance Fraud Prosecutor and the New Jersey State Police determined Mercer sold, or caused to be sold, the vehicle on May 3, 2011. The vehicle was subsequently registered and titled in Maryland on May 4, 2011, eight days prior to the date Mercer reported the vehicle had been stolen. 

IFA Insurance Co. on June 24, 2011 denied Mercer’s claim and referred the matter to the Office of the Insurance Fraud Prosecutor.


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