'Fast and Fraudulent' Sting Op Nets 30+ Arrests

Several people were arrested for auto insurance fraud as the result of a six-month sting operation dubbed "The Fast and the Fraudulent," conducted by the Regional Auto Theft Task Force (RATTF) and the Organized Auto Insurance Fraud Task Force. Felony arrest warrants issued by the Santa Clara County, Calif. District Attorney's Office for 40 people allegedly involved in the operation, and 30 suspects are in custody.

The majority of arrests made were owners and operators at 25 different Santa Clara County body shops. Numerous other arrest warrants were served on individuals reportedly participating in insurance fraud using their own vehicles.

The operation targeting insurance fraud is continuing and more arrests are expected. Several body shops are cooperating with authorities to identify other businesses and individuals that have participated in insurance fraud. The district attorney anticipates issuing additional complaints for individuals who allegedly participated in insurance fraud with the body shops. Bureau of Automotive Repair investigators participating in the raids are seeking to revoke the licenses of shops involved.

Law enforcement officials noticed a nationwide increase in the filing of false reports of auto theft and vandalism in order to facilitate insurance fraud. San Jose Police Lieutenant Dale Morgan, commander of RATTF, noted the alleged involvement of the illegal street racing culture in many of these false reports.

Pair Arrested on Auto Fraud Charges

John Lee Sullivan, 50, of Applegate and Debra Michell Sprigg, 42, of Sacramento were arrested and charged with two counts of felony insurance fraud.

The California Department of Insurance (CDI) Criminal Investigations Branch's Fraud Division allegedly found Sprigg's pickup truck parked in front of her home when it was purportedly struck by another vehicle. Inside the bed of the truck was a sprint car chassis, which Sprigg alleged was damaged in the collision.

Sprigg allegedly submitted an invoice to Farmer's Insurance stating the chassis was a 1999 John Boy model with the estimated value of $1,900. Sullivan, the owner of J B Racing Components, supposedly supplied the invoice.

The investigation further revealed that the invoice Sprigg purportedly presented to Farmers was fraudulent. The chassis was determined to be a 1985 model of little or no value. Sprigg later reportedly admitted to investigators that she obtained the invoice from Sullivan in order to increase her insurance settlement. Sullivan also admitted to investigators that he produced the invoice at the request of Sprigg and that the items listed on the invoice were not purchased from his business.

Broker Guilty of Felony Grand Theft

Marc Laurence Ellen, 41, of Thousand Oaks, Calif. was sentenced in Ventura County Superior Court to serve 10 days in county jail, pay restitution, and complete 36 months of formal probation after pleading guilty to one count of felony grand theft. Ellen allegedly embezzled insurance premium checks from two Ventura area women under the guise of Healthsmart Insurance in Woodland Hills. The CDI revoked Ellen's license to transact insurance effective Sept. 9, 2002.