Fraud Roundup

Article

Former Los Angeles agent sent to prison

A former Los Angeles insurance broker surrendered himself to authorities after being convicted of two fraud counts, the California Department of Insurance reported. Gurjeet Singh of Los Angeles, was sentenced on July 2, 2007, to serve one year and one day in federal prison after pleading guilty to two counts of mail fraud in connection with an insurance fraud scheme. The CDI collaborated with the Federal Bureau of Investigation and the United States Postal Inspection Service to uncover the illegal activity.

Investigators discovered that Singh, dba Monika Insurance Services in West Hollywood, Calif., was hired to provide automobile liability coverage for approximately 100 Prime Time Shuttle fleet vans providing shuttle services to Los Angeles area airports. From August 2002 to January 2005, he provided shuttle drivers with fraudulent insurance identification cards. Singh failed to remit more than $1.5 million in premium payments from Prime Time Shuttle.

Singh also admitted to falsely representing to victims that they were insured. He acknowledged that as a result of his scheme, 11 victims suffered medical expenses and property damage resulting in at least $163,000 in unpaid losses. In addition to serving time, Singh was ordered to pay $169,979 in restitution. The case was prosecuted by the U.S. Attorney’s Office-Central District of California.

Framing contractor to pay $291,444

San Diego County Superior Count Judge David Danielsen ordered framing contractor Christopher Nicol to pay $291,440 in restitution to California’s State Compensation Insurance Fund. Nicol, 38, owner of BC Framing, pleaded guilty to one count of workers’ compensation insurance premium fraud. Judge Danielsen also imposed a sentence of 365 days in the custody of the sheriff but stayed that custody pending Nicol’s successful completion of probation.

BC Framing specializes in residential and commercial framing projects in East San Diego County.

State Fund provided workers’ compensation coverage to BC Framing from November 2001 through June 2005. According to SCIF, the fraud was first reported when a State Fund auditor received a tip from one of Nicol’s business associates regarding payroll reporting practices. An audit of BC Framing’s records uncovered hundreds of thousands of dollars in underreported payroll. State Fund’s Special Investigation Unit submitted a report of its suspected fraud case to the San Diego County District Attorney’s Office and the Department of Insurance (DOI) for its review.

State Fund assisted the San Diego County District Attorney’s Officer in its investigation, which included an audit of Nicol’s workers’ compensation records.

Hells Angel to pay $55,000

Richard “Smilin’ Rick” Fabel, who presided over the Spokane, Wash., chapter of the Hells Angels motorcycle gang, has been sentenced to 7.5 years in prison after being convicted of racketeering, and ordered to pay $55,000 in restitution, mostly to Progressive Corp., for fraudulent insurance claims.

U.S. District Judge Robert S. Lasnik issued the sentence.

In June, following a 10-week trial, a jury convicted Fabel of racketeering and conspiracy to commit racketeering — specifically, mail fraud, extortion and trafficking in stolen motorcycles.

The judge noted that while Fabel kept his distance from the most serious crimes committed by the Hells Angels’ Washington Nomads chapter — including murder — he stocked the Spokane clubhouse with people willing to do violence and rewarded criminal behavior that enriched the organization.

Fabel was tried with three other current and former Hells Angels, one of whom — Rodney Rollness — was convicted of killing a Snohomish County man to punish him for pretending to be a Hells Angel, prosecutors said. Fabel honored Rollness and another defendant, Joshua Binder, with “Filthy Few” patches signifying they had killed for the club.

The U.S. attorney’s office had recommended a 10-year sentence, $50,000 fine, $55,000 in restitution and an order that Fabel be barred from associating with Hells Angels following his release.

Lasnik did not impose a fine but ordered that Fabel stay away from other Hells Angels for at least a year.

Fabel maintained his innocence and told the court he appreciated the support he had received.