Fraud of the Week

Auto fraud – California

Amount – Unknown

A woman was in a car accident after her auto policy had lapsed for nonpayment. Following the accident, she sent payment to the company to reinstate her policy. She then submitted a claim to the insurer that her vehicle had been stolen and also made a claim for the damage to her vehicle from the accident. Upon investigation, the fraud unit determined the woman had reinstated the policy after her accident, meaning she was actually uninsured when the damage occurred to the vehicle. She is scheduled to be sentenced in June and faces up to five years in jail and a fine of up to $50,000 or twice the amount of the claim, whichever is greater.