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New York Body Shop Charged with Running 'Damage Enhancement Scheme'
6/29/2011

A New York body shop owner and one of his employees have been charged with purposely damaging vehicles brought in for repairs so they could submit exaggerated bills to insurance companies.

Elie Berger, owner of Perfect Collision in Borough Park, and his employee Hershy Greenberger allegedly enhanced damage to a car insured by Geico.

Geico was suspicious that the shop was running a "damage enhancement scheme," so Kings County District Attorney investigators brought in a vehicle with damage to the front passenger-side fender to Perfect Collision after first photographing that damage. When a Geico adjuster showed up to take a picture of the damage, it had been "enhanced," according to the indictment.

Another charge against Perfect Collision is billing Geico more than $1,000 for a rental vehicle in an undercover's name – despite the undercover explaining to Greenberger that he did not want a rental vehicle for the week of repairs.

Prosecutors believe insurers other than Geico also may have fallen victim to the shop's scheme.

After executing a search warrant on Perfect Collision and Berger's home, investigators found more than $700,000 in cash and a 2011 application for public assistance that claimed that Berger made $350 a week as an employee of Perfect Collision. 


More information:

Read story with photo in the New York Daily News


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