After a statewide investigation into automobile insurance fraud, 35 local defendants have been charged with felonies, the San Diego County District Attorney’s Office announced Wednesday.
The office filed a total of 84 felony charges against the defendants, including presenting a false insurance claim, concealing an event effecting insurance claim, attempted arson and filing a false police report.
“Our Insurance Fraud Division continues its track record of holding accountable those who would commit this type of fraud, and ultimately these types of prosecutions help protect the consumer,” said District Attorney Bonnie Dumanis. “These types of scams result in higher rates and premiums, especially for those customers who are insured by the companies hardest hit by fraud.”
The sweep, known as “Operation Crash and Buy,” targeted drivers who had no auto insurance or were underinsured and purchased or added coverage after a collision or damage was sustained. Suspects then filed a fraudulent claim in an attempt to get the insurer to cover the damage to the uninsured vehicle.
In some cases the fraud was uncovered before the insurer paid on the claim; in others it was discovered after the claims were paid. Detectives suspect that the actual and potential losses to insurers in California totaled more than $1 million.
The District Attorney’s office worked cooperatively with detectives from the Department of Insurance and local law enforcement to investigate these cases.
Altogether, District Attorney Offices in 22 counties have filed 171 felony and 28 misdemeanor charges against 187 people for alleged auto insurance fraud committed against 40 insurance companies.
“Unfortunately, this type of insurance crime is surprisingly common,” said Insurance Commissioner Dave Jones. “Insurance fraud is an expensive drain on the state’s economy that totals into the billions of dollars annually in California. This is not a victimless crime. The costs of these scams are passed along to consumers through higher rates and premiums–everyone pays for insurance fraud.”
Report insurance fraud to the San Diego District Attorney Insurance Fraud Hotline at 1-800-315-7672, learn how to shop for insurance and find out if you qualify for California’s Low Cost Auto Insurance.
