Former N.J. Law Enforcement Officer Sentenced to Prison for Masterminding 'Arson for Profit' Enterprise

March 22, 2004

New Jersey Attorney General Peter Harvey announced that a former Mercer County law enforcement officer was sentenced to eight years in state prison for masterminding an "arson-for-profit" and insurance fraud scheme responsible for at least 10 Mercer County arson fires which netted more than $500,000 in insurance settlement claims. The Division of Criminal Justice - Office of Insurance Fraud Prosecutor continues to investigate allegations related to additional arson fires, the bribery of a fire fighter, and an alleged scheme to inflate construction costs to obtain illegal profits.

According to Vaughn McKoy, director, Division of Criminal Justice and Insurance Fraud Prosecutor Greta Gooden-Brown, Marc Rossi, 39, of Hamilton Township, Mercer County, was sentenced by Mercer County Superior Court Judge Charles Delehey to eight years in state prison and ordered to pay a $50,000 civil insurance fraud fine pursuant to the Insurance Fraud Prevention Act. Rossi was also ordered to pay $537,673 in restitution to Providence Washington Insurance Company ($306,209); Zurich Insurance Company ($90,318); Pennsylvania Mutual Insurance Company (($31,176); Farmers Mutual Fire Assurance of New Jersey ($2,054); New Jersey Underwriters Association ($59,021); and Liberty Mutual Insurance Company ($48,895).

Gooden Brown noted that Rossi pleaded guilty to multiple charges of arson, conspiracy to commit arson, bribery, theft and theft by deception on Nov. 10, 2003. The charges were contained in two separate State Grand Jury indictments returned on July 18 and Dec. 3, 2002. The indictments identified Rossi as the owner/operator of Rossi Adjustment Services, a Trenton-based insurance claims adjusting firm. In pleading guilty, Rossi reportedly admitted that between Jan. 22, 1999 and Aug. 10, 1999 to planning or participating in the setting of fires at:

• Dec. 14, 1998 fire at a residence located at 508 West Hanover Street, Trenton (property of Geneva Adderley);
• Jan. 11, 1999 barn fire at 58 Soloff Drive in Hamilton Township (property of Frank "Sonny" Rose);
• Jan. 22, 1999 fire a residence located at 1732 East State Street, Hamilton Township;
• Feb. 2, 1999 fire at a rental property located at 41-43 Prospect Street, Trenton;
• March 11, 1999 fire at Graziano's Florist located at 540 South Clinton Ave., Trenton;
• April 6, 1999 fire at the Country Barrel Inn located at 5834 South Broad Street, Hamilton Township;
• Additionally, Rossi admitted that he purposely caused property damage at an apartment he owned located at 136 Second Ave. in Bordentown by making it appear that vandals had broken into the residence and caused damage which was subject to an insurance claim reimbursement.

A separate criminal Accusation filed on Nov. 10, 2003 charged Rossi and others with paying a $100 cash bribe on or about June 24, 1998 to a member of a Hamilton Township volunteer fire department (Enterprise Fire Company) in order to increase fire related damage to buildings and to obtain work for his (Rossi's) insurance adjustment business. Rossi also pleaded guilty to theft by deception by inflating construction costs to steal monies from a construction project involving the East Windsor Police Athletic League. The Division of Criminal Justice - Office of Insurance Fraud Prosecutor is continuing to investigate the allegations regarding the East Windsor Police Athletic League.

The arson-for-hire investigation conducted by the Office of Insurance Fraud Prosecutor resulted in the indictment and/or charging of several Rossi co-defendants identified as part of the arson and insurance fraud conspiracy. The co-defendants include:

• Michael Winberg, 42, of Levittown, Pa. Winberg was reportedly charged in a May 28, 2002, State Grand Jury indictment with setting the March 19, 1999 fire at Jerry's Pizza located at 701 South Broad St., Trenton. Winberg, formerly a licensed public insurance adjuster, was employed by Rossi Adjustment Services as a public insurance adjuster. Winberg was previously convicted by the Office of the Insurance Fraud Prosecutor for theft related to his insurance business as a public adjuster. On March 16, 2001, Winberg was sentenced on the theft charge to three years probation and ordered to pay restitution in the amount of $15,337. On Oct. 24, 2002 Winberg was sentenced to five years in state prison on the arson charge;

• Jeffrey Nemes, 37, of Mercer County. Nemes, the former owner/operator of Nemes Enterprises construction company, was reportedly indicted by a State Grand Jury on Dec. 18, 2000, on a charge that he stole at least $75,000 in insurance money for failing to complete agreed upon repairs from four homeowners whose properties had sustained fire damage. Nemes, a former sergeant with the Hamilton Township Police Department and former volunteer deputy chief of the Whitehorse Fire Company, was convicted by a jury in February, 2003 on charges of theft by failure to make required disposition of property received. On May 30, 2003, Nemes was sentenced to seven years in state prison;

• Frank "Sonny" Rose pleaded guilty to an Accusation on Dec. 8, 2000 which charged him with arson and conspiracy to commit theft by deception. Rose reportedly admitted to conspiring with Rossi to set fire to his (Rose's) garage in order to submit an insurance claim. Rose was subsequently paid $44,000 by the insurance company. Rose was sentenced to five years probation on Dec. 14, 2001;

• Marc Graziano, the former owner of Graziano's Florist Shop, pleaded guilty to an Accusation on Feb. 11, 2002, which charged conspiracy to commit arson and theft by deception. In pleading guilty, Graziano reportedly admitted that he conspired with Rossi and others to set fire to the florist shop in order to obtain $65,892 in fire insurance claim money from Zurich Insurance Group. Graziano was sentenced to five years probation on March 21, 2003;

• Otis Boone, 35, Trenton, Mercer County, was charged via a State Grand Jury indictment on Feb. 27, 2000, with arson for hire, theft by deception, conspiracy and possession of a weapon for an unlawful purpose. It was charged that Boone had participated in seven arson fires, including Jerry's Pizza, the Country Barrel Inn and Graziano's Florist Shop. The weapons charge stemmed from Boone's reported use of a "Molotov cocktail" to start one of the fires. Boone pleaded guilty to conspiracy and six counts of aggravated arson on Oct. 21, 2002. On Dec. 12, 2003 Boone was sentenced to four years in state prison;

• Jerome Adderley, 37, Ewing Twp., Mercer County, was indicted by a State Grand Jury on Feb. 27, 2000 on charges of conspiracy, arson and theft by deception in connection with the Graziano Florist Shop arson fire. Adderley was arrested by the New York City Police Department on July 18, 2002 on a fugitive warrant filed by the Division of Criminal Justice. Adderley reportedly pled guilty to conspiracy on Aug. 27, 2002 and was sentenced on Dec. 20 to two years probation conditioned upon serving 364 days in county jail. .