View this article online: https://www.insurancejournal.com/news/east/2019/04/03/522716.htm
A Shrewsbury, Mass., man who owns two automotive repair businesses has been indicted in connection with a motor vehicle fraud scheme in which he damaged vehicles and stole $170,000.
Adam Haddad was indicted last week by a Statewide Grand Jury on 18 counts of motor vehicle insurance fraud, 15 counts of larceny by false pretenses over $1,200, three counts of attempted larceny and six counts of malicious destruction of property.
ADH Collison of Boston Inc., owned by Haddad and located in Everett, Mass., was indicted on 10 counts of motor vehicle insurance fraud and eight counts of larceny by false -pretenses over $1,200.
Accurate Collision Inc., owned by Haddad and located in Worcester, Mass., was indicted on eight counts of motor vehicle insurance fraud and seven counts of larceny by false pretenses over $1,200. The defendants will be arraigned in Middlesex County and Worcester County at later dates.
The Massachusetts Office of the Attorney General began its investigation in 2017 after a referral from the Insurance Fraud Bureau. These charges are the result of a joint investigation by the Insurance Fraud Bureau of Massachusetts, the Massachusetts State Police assigned to the AG’s Office and the Everett Police Department.
The investigation revealed that over the past four years, Haddad regularly enhanced damage and caused new damage to customer’s vehicles in order to falsely inflate appraisal repair quotes for labor, paint and parts reimbursement requests. Haddad would then make an additional profit by pocketing the insurance company’s check and not completing the necessary repairs on the customers’ cars.
Surveillance footage from one of Haddad’s business locations shows him using mallets, sledge hammers and pieces of wood to intentionally cause damage to five customers’ vehicles. In total, the AG’s Office alleges that he stole more than $170,000 from 11 different insurance companies.
This investigation is ongoing, and these charges are allegations and defendants are presumed innocent until proven guilty.
Source: The Massachusetts Office of the Attorney General