The four year investigation has been completed on Friday.  It is said that 12 people have been arrested in the million-dollar auto theft insurance scam. The California Department of Insurance reiterated that there were 18 people involved in the scam – one from Fresno and 17 from Los Angeles.
According to state agency, in this scam, people had used phony credit cards along with bogus bank accounts to purchase 21 heavy vehicles.  State agency officials said that “scammers had purchased Lexus, Audi, BMW and Mercedes from the 18 dealers of Los Angeles.
On the other hand, the Department of Insurance said that “they had crashed the vehicles with intend to claim damage insurance from the insurance companies and they had exported 3 cars out of the country”. A senior official of the State Agency said that “12 crooks have been booked and 6 are still at large”. He further opined that we have arrested a couple that was also involved in this scam.
The members of the ring have been charged for insurance fraud, grand theft from insurance companies, false pretenses to buy vehicles and providing false information on government documents. The case is being carried by Los Angeles County district attorney’s office.
It goes without saying that state Insurance Commissioner Dave Jones said to media reporters that “the ring was highly organized and they have filled their pockets by looting the car dealers and insurance companies”.
It is said that more than 10 companies had been affected from phony claims including Progressive, Ameriprise, Geico, Farmers, Allstate, State Farm, Wawenesa, Unitrin and Nationwide. The investigation is undergoing however names of dealerships have not been made public.