A former American Automobile Association claim adjuster and two accomplices recently were arrested and charged with committing 62 counts of felony fraud.
According to a release from the California Department of Insurance, Drake Reed was an insurance claim adjuster for AAA who took advantage of his position in the company and his knowledge of how his claim department operated. Along with two acquaintances, 45-year-old Jerry Schatz and 30-year-old Joshua Belville, Reed allegedly submitted more than 33 false and inflated claims on their homeowners' and automobile policies that totaled almost $600,000. The claims involved everything from home repairs, vehicle burglaries, and personal property theft.
Beyond just submitting the false claims, though, the trio worked the system from the inside using a surprisingly nefarious scheme. After claims were closed, Reed used his manager's password to authorize additional checks that he deposited into accounts created by Schatz. According to investigators, Reed netted $208,085, Schatz received $322,440, and Belville acquired $32,985 in fraudulent proceeds from the inflated claims. Authorities executing search warrants reportedly found items such as boats, recreational vehicles, motorcycles, and classics cars at the residences of the three men.
The case began to be investigated by authorities when AAA's internal Special Investigations Unit referred their suspicions to the California's Department of Insurance. If convicted of the conspiracy and grand-theft charges, Reed faces 43 years in state prison, Schatz could receive 33 years, and Belville could be given 10 years.
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