Fraud Roundup

State Patrol veteran hired for anti-fraud unit

Washington Insurance Commissioner Mike Kreidler has appointed a veteran of the State Patrol to manage the agency’s newly authorized insurance anti-fraud program.

Capt. Robert Veliz of Yakima, a 26-year veteran of the State Patrol, will head the special unit that is charged with protecting the public and the state’s economy from insurance fraud. Veliz, who is retiring from the State Patrol to assume the new position, most recently was assigned as WSP’s Commander for District 3 (Southeastern Washington) headquartered in Yakima.

The Legislature approved the anti-fraud unit last session after Kreidler testified that Washington, one of the few remaining states in the nation without a fraud program, was becoming more attractive to insurance scammers and organized fraud rings.

Nineteen arrested for auto body fraud

Nineteen suspects were arrested in California for various felony counts of insurance fraud, resulting from an extensive sting operation in Butte and Shasta counties. Seven were arrested in Butte County, and 12 in Shasta County self-surrendered to the Shasta County Jail and were released on their own recognizance, according to the California Department of Insurance.

During April and May 2006 in Shasta, and during May 2006 in Butte, the CDI Fraud Division, with assistance from the Butte and Shasta County District Attorney’s offices, unearthed numerous instances of suspected fraud that could have bilked consumers out of tens of thousands of dollars.

Using information from various sources, including the National Insurance Crime Bureau (NICB), the Bureau of Automotive Repair (BAR), the Butte County District Attorney’s office, and licensing data and public business directories, officers visited the shops in Butte and Shasta Counties.

An undercover officer visited 38 body shops, saying she had been involved in a car accident. The officer further explained that her car had damage to the left side as a result of the “legitimate” accident and that the damage would be covered under her auto insurance policy.

The undercover officer informed the owners and estimators that there was existing damage on the right front fender that was already present when she purchased the vehicle, but asked if it would be possible to combine the insured and uninsured damage as one claim. Eight shops provided a fraudulent repair estimate ranging from $2,000 to $3,500.

The Butte County District Attorney’s Office will likely charge eight suspects with felony counts of insurance fraud. Of the eight, five are owners and three are employees.

The NICB, BAR and Esurance Insurance Co. assisted the CDI’s Fraud Division and the Butte County District Attorney’s office in the investigation.

Topics Washington