Word: granberg
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Eight months after her husband's disappearance, Mrs. Granberg petitioned the court to have him declared legally dead. Although his body had never been found, the case seemed straightforward. He had a minor heart condition. There had been two witnesses. In March 1982, a judge ruled the death legal; by September, $208,000 in payments had poured...
Only Mutual Life Insurance Company of New York (MONY) balked at paying, claiming Granberg was still alive. Although phony death claims are extremely rare-less than one-tenth of 1% of all death claims are found to be fraudulent-MONY's chief litigation counsel, Jerry Alan Marr, was suspicious about Granberg. He "was overinsured for a man of his means," says Marr. A year ago, two other insurance companies, conceding Granberg's death, told his wife they would not pay double indemnity, or extra accident benefits, because they thought Granberg had died of a heart attack, not drowning...
...Bird found a man in a Staten Island bar who claimed that Granberg, a week before his accident, had offered $10,000 to take him out in a boat and come back alone with a tale of drowning. In July, Bird found another source, a relative of Granberg's, who revealed that three months before the accident, Granberg had visited his brother Richard, an ex-convict who lived in Puerto Rico. The relative said Granberg told his brother about the bogus death plot and borrowed his passport. Says Marr: "We believe now that they started planning this almost...
Piecing together the scam, the investigators speculate that the scenario unfolded this way: Rignola and Farriel let Granberg off the boat shortly after they left shore, where he was picked up by his wife and driven to the airport to board a flight to London, using his brother's passport. He had friends and contacts in London, where he sometimes used his brother's name and sometimes used the name James Kelly. Six months later, Judy Granberg met her husband in London and stayed with him at an elegant hotel. Then Granberg, investigators believe, returned to New York...
...Marr and Bird, now only hours behind the trail of the Granbergs, staked out one of the family's favorite hiding spots, the Temple Hills Motel in New Windsor, N.Y. The investigators now had enough evidence to bring in state police and federal inspectors for an arrest, and when Granberg walked unsuspectingly out of his motel room, they pounced. Granberg was indicted the following week by a federal grand jury on four counts of fraud and is now in jail in Manhattan, awaiting trial. Judy Granberg, Rignola and Farriel were also arrested on charges of fraud. Says Marr...