Fraud Roundup

Calif. pair arrested for fraud, grand theft and conspiracy charges
California Insurance Commissioner John Garamendi has reported that Troy Portillo, a body shop manager, and Gabi Zaarour, a parts department manager, were arrested in the city of Torrance for insurance fraud, grand theft and conspiracy charges.

A tip from Mercury Insurance Co. regarding one of its 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.

Portillo reportedly contacted Gardena Police Department and Mercury Insurance Co. to report his 2004 Honda Pilot stolen. Detecting numerous fraud alerts, Mercury Insurance contacted the Department of Insurance’s Fraud Division. An AIFTF investigation revealed that Portillo’s vehicle was falsely reported as stolen, when 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 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.

The Los Angeles County District Attorney’s Office filed charges of insurance fraud and conspiracy to commit insurance fraud against both parties. Zaarour pled to one count for being an accessory to the fraud. If convicted, Portillo could face up to five years in prison and/or $50,000 in fines, plus restitution. The loss to Mercury Insurance was $33,128.

Guilty pleas in Calif. tow yard case
The manager of a California South Bay tow yard and the company itself have pleaded guilty to felony counts of perjury and conspiracy in Los Angeles Superior Court, the District Attorney’s office announced.

S&W Towing and Storage Corp., which contracts with the city of Hawthorne to tow and impound vehicles, pleaded guilty to six counts of subornation of perjury and three counts of conspiracy. Manager John Germain pleaded guilty to identical charges before Superior Court Judge Larry Paul Fidler.

Deputy District Attorney Frank Tavelman of the Target Crimes Division said Germain faces a maximum state prison term of 11 years when he returns to court on May 5. The company also will be sentenced at that time, and both could be fined and ordered to make restitution.

Charges against Germain and the company alleged the crimes involved illegally claiming ownership of impounded cars, which were sold. There was no public auction.

The prosecution also alleged the prices of cars sold by S&W were underreported to the Department of Motor Vehicles. Collectors were dispatched to the original owners, many with low incomes, claiming the sales of the vehicles did not cover fees and other charges.

Former Calif. Farmers agent sentenced
Gary Calcagno of Carlsbad, Calif., has been sentenced to three years probation and ordered to pay $13,460 restitution for stealing premiums from 20 clients.

Calcagno’s sentencing resulted from an investigation led by the California Department of Insurance’s (CDI) Investigation Division. A Farmers Insurance internal audit of his handling of insurance premiums had reportedly revealed that during a six-month period in 2003 Calcagno failed to remit insurance premiums to the company totaling $13,460.72. Calcagno worked for Farmers from May 24, 1994, to July 10, 2003.

In an additional case, another investigation by CDI reportedly showed that between December 2002 and July 2003, Calcagno sold homeowners insurance policies to six clients in San Diego and Riverside counties. He collected premiums totaling $5,528 from those clients, but failed to remit funds to Pacific Specialty Insurance Co.

In that case he was convicted on three felony counts of Grand Theft. Prior to his sentencing, he had already paid $5,528 in restitution to the six victims. The San Diego County District Attorney’s Office Insurance Fraud Division prosecuted that case.

Topics California