Calif. Pair Arrested for Insurance Fraud, Grand Theft and Conspiracy Charges

California Insurance Commissioner John Garamendi reported that on Jan. 6, 2006, suspects Troy Portillo (body shop manager) and Gabi Zaarour (parts department manager) were arrested in the City of Torrance for insurance fraud, grand theft and conspiracy charges.

A tip from Mercury Insurance Company regarding one of their insured’s fraudulent auto theft claim allowed investigators with the Los Angeles County Auto Insurance Fraud Task Force (AIFTF) to crack the case of Portillo framing the theft of his own vehicle.

On May 17, 2005, Portillo reportedly contacted Gardena Police Department and Mercury Insurance Company to report his 2004 Honda Pilot stolen. Detecting numerous fraud alerts, Mercury Insurance contacted the Department of Insurance’s Fraud Division on November 30, 2005 to voice their concerns. AIFTF investigators conducted an investigation and discovered that Portillo’s vehicle was falsely reported as stolen, when all along it was stored in Zaarour’s garage.

A few months later, with the reported assistance of accomplice Zaarour, Portillo removed the vehicle from Zaarour’s garage and then attempted to dispose of it in the City of San Pedro. However, the vehicle was later recovered by the Los Angeles Police Department Harbor Division on Sept. 19, 2005. Apparently, Portillo and Zaarour had left the vehicle stranded on a public street with the CD and DVD intentionally stripped. The investigations lead to the arrests of Portillo and Zaarour on Monday, Jan. 6, 2006.

The Los Angeles County District Attorney’s Office filed charges of insurance fraud and conspiracy to commit insurance fraud against both parties who were arraigned on Friday, Feb. 3, 2006 in Superior Court. Zaarour pled to one count for being an accessory to the fraud. Portillo’s next court date is scheduled for March 7, 2006. If convicted, Portillo could face up to five years in prison and/or $50,000 in fines, plus restitution.

The suspects were arrested on charges of felony Insurance Fraud, Penal Code (PC) sections 550(a)(1) and 550(a)(4); felony Grand Theft, PC section 487; and felony Conspiracy, PC section 182. The loss to Mercury Insurance was $33,128.