Philadelphia Official, Auto Body Shop Charged in $400k Fraud

Philadelphia Official, Auto Body Shop Charged in $400K Fraud

Prosecutors allege a city fleet supervisor steered work to American Collision, which overcharged the city $400,000 for phony or inflated bills.

The Associated Press reported that prosecutors in Philadelphia allege a city fleet supervisor steered work to an auto body shop that overcharged the city $400,000 for phony or inflated bills.

American Collision is also at the heart of a pending case accusing it of using deer carcasses and other props to stage accidents and collect on insurance claims.

The shop owner, Ronald Galati Sr., is currently serving more than 20 years in prison for attempting a failed hit on his daughter’s boyfriend.

Prosecutors alleged March 8th that Galati and his son, Ronald Galati Jr., didn’t have welding equipment needed to get the city contract, but city fleet supervisor Robert Otterson qualified them for the work and told them how much to bid to win the contract.

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