Organized Crime Ring in California Busted for Auto Collision Fraud

Juan Ortiz Velazquez, 27, of San Jose, Calif. and owner of Carlos Auto Body, was arrested with seven other suspects and charged with multiple counts of felony insurance fraud on Wednesday for allegedly filing 20 fraudulent claims to four insurance companies for crashes that never occurred-leading.

The acts reportedly led to more than $140,000 in losses. A ninth suspect remains at large and is being sought.

After receiving an anonymous tip and a suspected fraud referral from a victim insurer in 2012, the California Department of Insurance launched an investigation. Evidence revealed the alleged crimes, that led to Wednesday’s arrests and the discovery that a second body shop, Filo’s Auto Body, owned by Filomeno Arreguin Lucatero, was also involved in the fraud scheme.

Detectives uncovered evidence that Velazquez allegedly paid his co-conspirators $500 each to allow him to damage their vehicles, submit claims to the insurance company, and collect payment from the insurers. Detectives also found evidence that Velazquez and Lucatero did not complete some work as it was ordered on damage estimates.

This case is being prosecuted by the Santa Clara County District Attorney’s Office.

Suspects in custody are: Jose Caro Curiel, 46, Santa Clara; Melissa Duarte, 2, Hollister; Filomeno Arreguin Lucatero, 45; Milpitas; Angel Resendiz, 39, Gilroy; Manuel Resendiz, 40, Los Banos; Deisy Ramirez Robles, 27, San Jose; Lorenzo Robles Ramirez, 25, San Jose; Juan Ortiz Valezquez, 27, San Jose.

“California is ground zero for staged auto collisions,” Insurance Commissioner Dave Jones said in a statement. “Organized crime rings are responsible for the majority of staged collisions, which are costly to insurers and consumers. The multi-agency Urban Grant Task Force is one of our most effective weapons in eradicating these crimes.”

Topics California Auto Fraud