More Than Two Dozen Charged in Staged California Collision Auto Insurance Fraud Scheme - BodyShop Business

More Than Two Dozen Charged in Staged California Collision Auto Insurance Fraud Scheme

The suspects allegedly submitted 26 fraudulent insurance claims totaling more than $140,000. Once the insurers paid the claim, the suspects pocketed the proceeds and did not repair damaged vehicles.

fraud-car-crash

The California Department of Insurance announced that more than two dozen people have been arrested on multiple felony counts of insurance fraud for allegedly staging auto collisions to scam more than four insurance companies out of tens of thousands of dollars. The arrest was one of the largest arrest operations in Fresno history.

The suspects allegedly submitted 26 fraudulent insurance claims totaling more than $140,000. Once the insurers paid the claim, the suspects pocketed the proceeds and did not repair damaged vehicles.

Department of Insurance detectives, along with Fresno County District Attorney investigators, launched an investigation after receiving suspected fraud referrals from the insurance company. The CSAA Insurance Group was instrumental in assisting detectives with uncovering the fraud.

“California is ground zero for auto insurance fraud,” said Insurance Commissioner Dave Jones. “Insurance fraud costs insurers billions every year, and those costs are all passed along to consumers through higher insurance premiums. Bottom line – everyone pays for insurance fraud.”

Evidence revealed the suspects orchestrated an elaborate scheme to defraud insurers with paper collisions that never occurred or by intentionally damaging vehicles to submit fraudulent claims. The organized ring recruited some co-conspirators with promises of cash or fixing their previously damaged vehicles. Another element of the scheme included stealing people’s identities to submit fraudulent claims.

Suspects were booked into the Fresno County Jail. The Fresno County District Attorney is prosecuting this case.

You May Also Like

ASE to Offer Free Webinar on Pros and Cons of Aftermarket Sheet Metal

The webinar, titled “Pros, Cons & SOPs for Aftermarket Sheet Metal,” will be held on Tuesday, April 30 at 4 p.m. EST.

The National Institute for Automotive Service Excellence (ASE) announced it is hosting a free webinar titled “Pros, Cons & SOPs for Aftermarket Sheet Metal” on Tuesday, April 30 at 4 p.m. EST.

Automotive aftermarket sheet metal has been the industry standard since the 1970s, and many times the reputation for these parts is less than good. Some companies rise above the rest with quality, fit and finish, but it is a difficult world to navigate with constantly changing parts and standards.

Total Loss Consulting Launches Nationwide

TLC’s goal is to help consumers receive the correct value for their totaled vehicle.

NABC Donates Recycled Ride to San Diego Military Mom

The NABC, USAA and Fix Auto Collision Poway recently donated a refurbished vehicle to a single mother who is on active duty with the U.S. Navy.

NABC Donates Recycled Rides to Three Georgia Families

The NABC, along with various insurance and repair partners, recently donated Recycled Rides to three deserving Georgia families.

NABC Announces Winners of Lone Star Changing and Saving Lives Golf Fundraiser

More than 125 players, sponsors and industry members gathered for the second tournament of the NABC season.

Other Posts

Crash Champions Acquires Family Motors Auto Body in Bakersfield, Calif.

Crash Champions now operates more than 50 repair centers across Southern California and more than 630 locations across 37 states.

ASE Releases Chairman’s Message

New ASE Chairman Tom Trisdale says 2024 is a year of action for ASE as the challenges of repairing vehicles and the pressures facing technicians have never been greater.

CIF Announces National Coatings & Supplies/Single Source as Repeat Annual Donor

This marks National Coatings & Supplies/Single Source’s fourth consecutive donation at the First Responder tier.

CCG Acquires Square One Systems, Coyote Vision Group

For over 40 years, Square One Systems has delivered effective solutions to collision repairers centered around analytics, collaboration and accountability.