Manhattan DA Cy Vance announces indictment of 17 in near monopoly of towing industry.

Al Jones/ 1010 WINS

DA Vance: Suspects Used Shell Companies To Pull Off Tow Truck Scam

Man Accused Of Operating Violent Monopoly From 2015 To 2017

February 21, 2018 - 5:50 pm

NEW YORK -- Authorities say a New York City towing company spent two years pulling off a lucrative scam.

If you needed to be towed away from a crash between June of 2015, and December of 2017, chances are you were involved in organized crime.

Manhattan District Attorney Cyrus Vance announced indictments against 17 defendants in a virtual monopoly of the city's towing industry,.

"Four indictments with a number of types of criminal offenses, but are all really related to fraud, or the use of force in enforcing their ability to obtain a territory," Vance said.

Vance named Daniel Steininger as the leader of the operation, alleging he created a network of shell towing companies and strong-armed competitors.

"This scheme was all about having the appearance of competition," he said.

Vance alleged the defendants worked with body shops to inflate insurance claims, going so far as to enhance the damage while towing a vehicle to the shop.