Like Father, Like Son'

Investigators with the California Department of Insurance (CDI), Criminal Investigations Branch, served a search warrant at Murphy's Insurance Agency, operated by two licensed insurance agents, Dana and Patrick Murphy, father and son, respective.

According to the CDI, investigators suspect the agents of submitting fraudulent insurance documents to the State of California Public Utilities Commission (PUC), issuing phony insurance certificates and proof of insurance cards, and collecting premiums while failing to place coverage with carriers. Consumer losses currently exceed $80,000. The carriers listed on the phony certificates discovered thus far include Farmers Insurance Exchange, Truck Insurance Exchange, National Casualty, American Protection Insurance and Western United Insurance.

Investigators also believe bogus documents were provided to consumers and sometimes submitted to state agencies to conceal the fact that monies meant for insurance coverage were never forwarded to carriers.

Now It's Stolen, Now It's Not

A joint investigation by the CDI and the Tulare County District Attorney's Auto Insurance Fraud Unit led to the sentencing of Enrique Medina, 25, who pled guilty prior to his preliminary hearing. Medina was sentenced in the Tulare County Superior Court to 365 days in jail and received a $200 civil fine, with restitution to his insurer, Coast National Insurance, left open.

According to investigators, in April 2001, Medina reported his vehicle stolen from the Sequoia Mall in Visalia, Calif. Upon noticing discrepancies in Medina's statement, as well as evidence in the vehicle that suggested it had not been stolen, Coast National confronted Medina.

Medina recanted his earlier version of the events, stating that his vehicle was not stolen after all. Investigators reported that Medina stated he wanted to purchase another vehicle but could not afford to sell his own because he owed more on it than he had financed.

No Luck for this Lexus

As the result of a six-month investigation by the CDI Organized Automobile Fraud Interdiction Task Force, Samvel Saakyan, a 27-year-old former Sacramento auto dismantler, was arrested on four felony counts of insurance fraud and two felony counts of perjury.

According to investigators, in February 2000, Saakyan purchased a wrecked 1997 Lexus from his wife, owner of Sam's Auto Dismantler, and allegedly repaired the Lexus himself in 30 days. The following May, Saakyan insured the Lexus with North Pointe Insurance Company. On June 29, 2000, Saakyan reported the Lexus stolen and filed a claim with North Pointe for the theft, valued at $27,000.

North Pointe denied Saakyan's claim based on the degree of damage to the Lexus prior to his purchase and referred the claim to CDI's Criminal Investigation Branch. In a November 2000 examination under oath, Saakyan stated he had repaired the Lexus, had it inspected in Los Angeles while vacationing and registered the Lexus at the Department of Motor Vehicles in Folsom before the theft.

Investigators learned that the mileage recorded on the Lexus repair, inspection and registration documents did not correspond to Saakyan's alleged travels. Individuals connected with the repair and inspection of the vehicle informed investigators that Saakyan's vehicle was never repaired or inspected by them.