Published
July 7, 2026
Allegations Only · Presumed Innocent
This article describes a federal criminal complaint. The statements below are unproven allegations by prosecutors. Phillip Digennaro has not been convicted of anything, and he is presumed innocent unless and until proven guilty in court. This page is informational and is not legal advice.
If you have ever filed a legitimate settlement claim, this case matters to you — fraudulent claims come out of the same pot of money that pays real class members.
What Is This Case About?
A 38-year-old man from Greece, a small city Northern New York near the United States' border with Canada, was arrested and charged in federal court after prosecutors say he built a years-long operation around a single idea: filing fake claims in class action settlements and collecting money meant for real class members. According to the criminal complaint, Phillip Digennaro allegedly received about $1.3 million across more than 27,000 separate payments from roughly 107 different class action lawsuit settlements between January 2022 and December 2025.The case is one of the largest individual settlement-claim fraud prosecutions to be made public. It is a criminal matter, not a class action — there is nothing for consumers to claim here. But it is a useful window into how fraudulent claims work, and why they matter to honest claimants: when a settlement pays class members on a pro rata basis, every fake claim can shrink the check that reaches an actual consumer.
Status
Charged — Criminal Complaint
Presumed innocent unless and until proven guilty · released on conditions
Alleged Amount
~$1.3 Million
Across ~27,000 payments from ~107 class action settlements (Jan 2022 – Dec 2025)
Alleged Method
480+ Bank Accounts
Spread across eight financial institutions · over $1 million seized in May 2026
Charges
Wire Fraud + 3 More
Conspiracy, wire fraud, aggravated identity theft, money laundering · wire fraud carries up to 20 years
How Prosecutors Say the Alleged Scheme Worked
According to investigators, Digennaro allegedly used more than 480 bank accounts spread across eight financial institutions to receive settlement payouts. Splitting deposits across hundreds of accounts is a common way to try to evade the duplicate-claim detection systems that settlement administrators use, since many filters flag repeated payments to the same account or routing number.When investigators executed a seizure on May 21, they say they recovered over $1 million from accounts Digennaro controlled. Prosecutors say they also found multiple checks issued by settlement funds, devices containing records of class action claim filings, photoshopped documents bearing fake names, and a folder labeled "ready for claims."
The EcoDiesel Settlement Example
Prosecutors highlighted one settlement in particular. In the Chrysler-Dodge-Jeep EcoDiesel marketing and products-liability litigation — which paid cash to owners and lessees of certain 2014 to 2016 Ram 1500 and Jeep Grand Cherokee diesel vehicles — Digennaro allegedly submitted at least five fake driver's licenses and collected a total of $27,060 from the settlement fund.That EcoDiesel settlement required proof of vehicle ownership or lease, which is exactly the kind of documentation requirement that fabricated identity documents are designed to defeat. OCA covers the related Dodge Ram EcoDiesel EGR cooler class action as well.
The Charges
Digennaro is charged by federal criminal complaint with conspiracy, wire fraud, aggravated identity theft, and money laundering. The wire fraud count carries a maximum penalty of 20 years in prison. He made an initial appearance before United States Magistrate Judge Mark Pedersen in Rochester and was released on conditions.A criminal complaint contains allegations only. Digennaro is presumed innocent unless and until proven guilty in court.
What This Means for Legitimate Claimants
Cases like this are part of the reason settlement administrators have tightened claim verification over the past few years. Class members are increasingly asked for proof of purchase, account records, or identity verification even in settlements that historically paid on attestation alone — a shift we track in our explainer on no-proof versus proof-required settlements. Large-scale fraud also delays distributions, because administrators audit suspicious claim batches before releasing funds.The practical takeaway for consumers is simple: file honest claims, only for products you actually bought or services you actually used, and keep whatever documentation you have. Legitimate claimants have nothing to fear from fraud audits, and honest participation is what keeps low-friction claims processes available for everyone.
Frequently Asked Questions
How much money is involved?
Prosecutors allege approximately $1.3 million in total payments, with over $1 million seized from accounts Digennaro controlled in May 2026.
How many settlements were affected?
Investigators identified roughly 107 different class action lawsuit settlements that made payments tied to the alleged scheme.
Will affected settlements claw the money back?
Seized funds may be subject to forfeiture and restitution proceedings as the case moves forward. How any recovered money is returned to individual settlement funds will depend on the outcome of the prosecution.
Does this change anything for people filing claims now?
Not directly, though claim-verification requirements across the industry have generally become stricter as administrators respond to fraud.
Sources
• RochesterFirst — Greece man allegedly received $1M in false class action lawsuit claims (arrest, seizure details, and the EcoDiesel allegations)• News10NBC (WHEC) — Greece man charged after being accused of filing false claims in various class action lawsuits (the charges, the bank-account totals, and the initial appearance before Judge Pedersen)
OpenClassActions.com is a consumer news site and is not a law firm.
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Status
Charged by criminal complaint (presumed innocent)
Defendant
Phillip Digennaro, 38, Greece, NY
Charges
Conspiracy, wire fraud, aggravated identity theft, money laundering
Case Title
United States v. Phillip Digennaro
Court
U.S. District Court, Western District of New York (Rochester)
Max Penalty
Up to 20 years (wire fraud count)
