Investigators in California have arrested four suspects for their alleged involvement in a car insurance fraud ring. Their alleged activities cost scammed insurers $500,000 until they were found out by the California Department of Insurance, San Diego County District Attorneys Office, and the California Highway Patrol.AutoSpecial Investigations
The four arrests were made earlier this month following a substantial investigation into the scam.
According to reports, the car insurance fraud ring involved dealers buying previously damaged vehicles, and then filing exaggerated claims. It also involved alleged staged thefts.
When all was said and done, there were 10 suspects chargedin this scam, following Operation Dealers Choice, the joint task force investigation into this scheme.
The Operation Dealers Choice investigation was launched when a consumer call was made to the San Diego District Attorneys Office. The call pointed out that the dealers were purchasing damaged vehicles at local auto auctions. Once the vehicles were registered and insured, fraudulent theft or total damage claims were filed in order to receive insurance payouts.