Six Men Accused of Auto Ins. Fraud

Six men were accused of insurance fraud and criminal charges were filed in San Francisco. Suspects Damien Fukushima, 24, Kenneth Yeung, 22, Jeffrey Ng,21, Christopher Chang, 21, Ryan Won, 22, and Steven Chi, 23, were charged with felony counts of insurance fraud, grand theft and conspiracy.

In early 2002, Fukushima reported his 2000 Acura Integra stolen and filed a claim with Progressive Insurance Company. He was issued a check for $5,851.26 for the loss and a check was also issued for $12,896.74 to the lien holder, American Finance Company. An investigation revealed the six men were allegedly involved in the dismantling of the Acura as part of an insurance scheme.

Fresno Woman Arrested for Forgery

Tammy Sue Shouse, 39, of Fresno, Calif., was arrested by California Department of Insurance (CDI) investigators on three felony counts of forgery.

A search warrant was also executed by investigators and during the search, additional evidence of two or more fraudulent insurance claims was obtained. Investigators discovered evidence that Shouse allegedly staged the theft of her own car and set it on fire to collect insurance money. The Fresno County District Attorney's Office is prosecuting both cases.

CDI Investigation Leads to Arrest

Tamane Jamar Johnson, 29, was charged with one felony count of insurance fraud. If convicted, Johnson could face up to five years in state prison and a maximum fine of $50,000. Bail was set at $10,000.

According to investigators, Johnson reported his vehicle vandalized and audio equipment stolen from inside the vehicle. The alleged stolen items reported to CSAA Insurance included two sets of audio speakers, two amps and an in-dash TV/DVD. Upon inspection it was determined that the vehicle did not have the appropriate wiring to

support the alleged stolen equipment.

Later, Johnson reportedly submitted an altered receipt to the insurance company in an attempt to legitimize the claim. This investigation revealed that the receipt used was only an estimate and not an actual purchase receipt. The purported stolen items were never originally purchased or installed in Johnson's vehicle.

'Op Cabbie' Reveals Fraud Ring

The Los Angeles County Auto Insurance Fraud Task Force arrested more than a dozen suspects and served search warrants at 18 locations throughout the Glendale, Calif. area, including medical clinics, law offices and private residents in connection with an insurance fraud investigation dubbed "Operation Cabbie."

Staged or "paper collisions" were allegedly planned throughout the Los Angeles County area and worked with law offices to file fraudulent claims with insurance companies. Medical and chiropractic clinics were also involved by billing for alleged treatment provided to question victims. Half a million dollars in fraudulent claims have been linked to at least 13 staged collisions.

Approximately $500,000 in fraudulent claims were made to insurance companies. Mercury and Safeco Insurance Companies and the National Insurance Crime Bureau also assisted in the investigation. Each count of insurance fraud carries a maximum sentence of five years in state prison and/or fine of up to $50,000.

Multiple Fraud Arrests

Lawrence Babb, 35, Kristina Hermanson, 27, Erin Bowers, 32, and Kenneth Montalvo, 42, were arrested and charged with felony counts of insurance fraud, grand theft, conspiracy, and money laundering in the San Francisco area. Twenty-four claims with CSAA, Allstate, and State Farm Insurance Companies were filed by Hermanson, Bowers and Babb.

These claims involved the aforementioned suspects as claimants or as injured parties for claims involving property damage and the theft of property. Insurance companies paid settlements ranging from $3,200 to $15,000. Montalvo, who worked at Autoban Motors, was the contact person for insurance company representatives sent by Hermanson, where most of the alleged vehicle repairs and/or vehicle parts purchases were made as part of the claims.

Bail for the suspects ranges from $50,000 to $150,000. The investigation was conducted by the Benicia Regional Office Urban Auto Task Force and the San Francisco District Attorney's Office.

Sacramento Man Arrested for Ins. Fraud

An investigation by CDI's Fraud Division resulted in the arrest of Kenneth Michael Stockton, 33, of Modesto, Calif.

According to investigators, Stockton allegedly injured his back while working for Trans-Box Systems on Jan. 28, 1993 and settled a claim in 1995, which included future medical treatment.

In 1999 he received his last treatment and reopened his future medical claim in 2001. Stockton allegedly reported that he had not suffered any subsequent back injuries since his Jan. 28, 1993 injury.

The investigation also revealed that Stockton had also filed a workers' compensation claim on Jan. 30, 2000, while working for Smart & Final. He made erroneous material representations in relation to the original 1995 claim. While reopening the 1995 injury claim, he indicated that he had not been injured since the 1995 injury.

As a result of his supposed fraudulent misrepresentation, Stockton received in excess of $4,984. Bail is set at $10,000. If convicted, he could receive a five-year sentence in state prison and/or a fine of $50,000.

To submit information for this department, e-mail cbeisiegel@insurancejournal.com.