In what they describe as "one of the largest arrest operations in Fresno history," detectives from the California Department of Insurance announced May 11 that they have arrested more than two dozen people 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.
According to the state officials, the suspects allegedly submitted 26 fraudulent insurance claims totaling more than $140,000. When the insurers paid the claim, the suspects pocketed the proceeds and failed to repair damaged vehicles. The insurance department detectives, along with Fresno County District Attorney investigators, began an investigation after receiving suspected fraud referrals from the insurance company.
The Walnut Creek, Calif.-based CSAA Insurance Group was "instrumental" in assisting with uncovering the fraud, state officials said.
"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."
The insurance department detectives found evidence that the suspects devised 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.
Then, these criminals took the fraud to a new level by stealing people's identities to submit fraudulent claims.
As of May 10, 15 suspects are in custody with more arrests to come.
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