Following an 18-month investigation by the CDI Fraud Division, 11 suspects have been arrested for insurance fraud as well as conspiracy in connection with an auto drag-racing team.
Investigators were assisted by the San Joaquin County District Attorney’s Office, the California Highway Patrol, the Stockton Police Department, the Livermore Police Department, the Santa Clara County Auto Theft Team and the National Insurance Crime Bureau.
According to CDI fraud investigators, members of the Devious racing team, who drove primarily Honda Civics, Preludes and Acura Integras, would remove parts from their vehicles and then report them stolen. After removing the parts, the vehicle owner would allegedly abandon the vehicle until it was recovered by local law enforcement.
Then the suspects would submit claims for the alleged missing parts and re-install the original parts to their vehicles. In addition to surgical strips, some individuals would intentionally key their paint in order to obtain new paint jobs or body kits. Insurance companies ended up paying close to $3,000 to individual owners for engine repairs that never occurred.
As a result of the Devious racing team’s misrepresentations, Farmers, Allstate, Mercury, State Farm, and California State Automobile Association paid out more than $50,000 in false claims.
Topics Personal Auto
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