Prosecutors: Pennsylvania Garage Modified Forklift For Insurance Fraud

April 21, 2011

Prosecutors in Philadelphia say an auto body repair business used a forklift fitted with car bumpers as part of large-scale insurance fraud scheme involving a police officer and seven insurance appraisers.

Authorities charged 11 people Tuesday with offenses ranging from bribery to participating in a corrupt organization. A spokeswoman for District Attorney Seth Williams says the total cost to insurers from the six-year scam is still being calculated.

Investigators say workers at University Collision Centers used the modified forklift to enhance or create damage to defraud insurers.

Appraisers allegedly overstated damage in exchange for kickbacks and the officer allegedly steered drivers who were involved in accidents to the garage.

A person who answered the phone at University Collision Centers declined comment before hanging up.

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