ROCHESTER, N.Y. (WROC) — A Greece man accused of collecting more than $1 million through false class-action lawsuit claims is raising a bigger question: How did one person allegedly receive more than 27,000 settlement payments before the pattern was caught?
Federal investigators said 38-year-old Phillip Digennaro used hundreds of bank accounts and fake documents to receive settlement payments he was not entitled to. Prosecutors said he received more than $1.3 million tied to 107 lawsuits between January 2022 and December 2025.
Attorney Greg Rinckey, with Tully Rinckey PLLC, said fraud in class-action settlements is not unheard of, but the scale alleged in this case stands out.
“We see fraud quite frequently in class actions, but never really at this level,” Rinckey said.
According to investigators, Digennaro used more than 480 bank accounts at eight financial institutions to receive the settlement money. In one instance, prosecutors said he submitted false claims in the Chrysler-Dodge-Jeep EcoDiesel Marketing, Sales Practices, and Products Liability lawsuit, which resulted in him allegedly receiving $27,060 after submitting five fake driver’s licenses.
Rinckey said the number of accounts allegedly connected to the case should have raised questions sooner.
“If you’re opening multiple accounts at the same bank, you know, if you’re opening 30 or more bank accounts, that should raise some questions,” Rinckey said.
Class-action lawsuits often involve large groups of consumers who may be entitled to compensation after a company reaches a settlement. Some payouts may only be around $20, while others can reach hundreds or thousands of dollars depending on the case and the claim filed.
Rinckey said the case highlights the responsibility of law firms and settlement administrators to carefully review claims before payments are made.
“The law firms that were administering the settlement funds, I mean, they have a duty to, when these claims come in, they need to be vetting these claims,” Rinckey said.
Investigators said police seized more than $1 million from accounts controlled by Digennaro on May 21. They also found multiple checks from settlement funds, devices containing records of class-action filings, photoshopped documents with fake names and a folder labeled “ready for claims,” according to prosecutors.
Rinckey said those types of allegations also point to a growing concern: how fraud could evolve as artificial intelligence makes it easier to create fake photos, IDs and other documents.
“AI has the ability now where you can create different photos for different IDs,” Rinckey said. “There have to be programs and AI programs that are going to counter that.”
Digennaro was arrested and charged with conspiracy, wire fraud, aggravated identity theft and money laundering. He was released on conditions.
