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.

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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.

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