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

Take the recent California case involving the arrest of three SanJose men: Trung Minh Le, 31; Ralph Abel Alvarez, 32; and MichaelJoseph Derrick, 36. The men were arrested for presenting a false orfraudulent insurance claim after an investigation by the SiliconValley Urban Auto Fraud Task Force, which is comprised of theCalifornia Department of Insurance's Enforcement Branch (CDI), theSanta Clara County District Attorney's Office, and the CaliforniaHighway Patrol.

According to authorities, in May 2008, Le allegedly conspiredwith Alvarez and Derrick to have Derrick steal Le's BMW. Accordingto the investigation, Alvarez informed Derrick where to find theBMW, and Derrick "stole" the vehicle. Le then falsely reported thevehicle stolen to San Jose Police Department. Approximately twomonths later, however, Derrick was spotted driving the "stolen"BMW. After a short pursuit, Derrick was apprehended in the basementof Alvarez's residence.

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