"Owner give-ups" is a phrase claim adjusters and investigators have been familiar with for years, but a deteriorating economy and desperate circumstances have meant that more and more policyholders are attempting to execute the scheme with greater frequency.

Take the recent California case involving the arrest of three San Jose men: Trung Minh Le, 31; Ralph Abel Alvarez, 32; and Michael Joseph Derrick, 36. The men were arrested for presenting a false or fraudulent insurance claim after an investigation by the Silicon Valley Urban Auto Fraud Task Force, which is comprised of the California Department of Insurance's Enforcement Branch (CDI), the Santa Clara County District Attorney's Office, and the California Highway Patrol.

According to authorities, in May 2008, Le allegedly conspired with Alvarez and Derrick to have Derrick steal Le's BMW. According to the investigation, Alvarez informed Derrick where to find the BMW, and Derrick "stole" the vehicle. Le then falsely reported the vehicle stolen to San Jose Police Department. Approximately two months later, however, Derrick was spotted driving the "stolen" BMW. After a short pursuit, Derrick was apprehended in the basement of Alvarez's residence.

A release from CDI reported that Derrick was paid to steal the BMW. Le later confessed to investigators that he fraudulently reported his vehicle stolen so he could simultaneously get rid of the car and collect on his insurance policy with California State Automobile Association. It is alleged that Alvarez and Derrick aided and abided, participated and helped stage the theft of the BMW knowing Le's intentions were to collect on his insurance policy.