A former American Automobile Association claim adjuster and twoaccomplices recently were arrested and charged with committing 62counts of felony fraud.

According to a release from the California Department ofInsurance, Drake Reed was an insurance claim adjuster for AAA whotook advantage of his position in the company and his knowledge ofhow his claim department operated. Along with two acquaintances,45-year-old Jerry Schatz and 30-year-old Joshua Belville, Reedallegedly submitted more than 33 false and inflated claims on theirhomeowners' and automobile policies that totaled almost $600,000.The claims involved everything from home repairs, vehicleburglaries, and personal property theft.

Beyond just submitting the false claims, though, the trio workedthe system from the inside using a surprisingly nefarious scheme.After claims were closed, Reed used his manager's password toauthorize additional checks that he deposited into accounts createdby Schatz. According to investigators, Reed netted $208,085, Schatzreceived $322,440, and Belville acquired $32,985 in fraudulentproceeds from the inflated claims. Authorities executing searchwarrants reportedly found items such as boats, recreationalvehicles, motorcycles, and classics cars at the residences of thethree men.

The case began to be investigated by authorities when AAA'sinternal Special Investigations Unit referred their suspicions tothe California's Department of Insurance. If convicted of theconspiracy and grand-theft charges, Reed faces 43 years in stateprison, Schatz could receive 33 years, and Belville could be given10 years.