Santa Clara County, Calif. Crackdown on Fraud Results in Several Dozen Arrests

September 23, 2002

The Regional Auto Theft Task Force (RATTF), together with the Organized Auto Insurance Fraud Task Force, conducted a six-month undercover sting operation, “The Fast and the Fraudulent” resulting in felony arrest warrants issued by the Santa Clara County, Calif. District Attorney’s Office for 40 people allegedly involved in insurance fraud.

The majority of arrests made were for owners and operators at 25 different Santa Clara County body shops. Numerous other arrest warrants were served on individuals reportedly participating in insurance fraud using their own vehicles.

California Highway Patrol (CHP) Officer Todd Brown, the lead investigator for this operation, received calls from law enforcement agencies throughout the country requesting information on conducting similar operations.

“The overwhelming success of this operation indicates how widespread and commonplace this crime has become,” Brown said. “Many body shop operators actually coached undercover officers on how to maximize the amount of money they could get from the insurance companies.”

The operation targeting insurance fraud is continuing and more arrests are expected. Several body shops are cooperating with authorities to identify other businesses and individuals that have participated in insurance fraud. The district attorney anticipates issuing additional complaints for individuals that reportedly participated in insurance fraud with the body shops. Bureau of Automotive Repair investigators participating in the raids are seeking to revoke the licenses of shops involved.

Law enforcement officials noticed a nationwide increase in the filing of false reports of auto theft and vandalism in order to facilitate insurance fraud.

San Jose Police Lieutenant Dale Morgan, commander of RATTF, noted the alleged involvement of the illegal street racing culture in many of these false reports.

Topics California Fraud

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