23 Involved in California Auto Insurance Fraud Ring Face Felony Charges

The Urban Automobile Insurance Fraud Task Force successfully dismantled an alleged auto insurance fraud ring that had been operating for years, resulting in the arrest of seven individuals yesterday. A total of 23 individuals are facing felony counts of insurance fraud and conspiracy in connection to the case. The alleged ringleader, Gerson Castro Martinez, 34, of San Jose, was apprehended on July 29 and is facing eight felony counts related to the fraud scheme.

The scheme purportedly involved family members and friends, defrauding insurance companies of over $174,000 through a sophisticated operation. The fraud was revealed through a collaborative effort by the Urban Automobile Insurance Fraud Task Force, consisting of representatives from the California Department of Insurance, Santa Clara County District Attorney Investigators, the California Highway Patrol, and the National Insurance Crime Bureau (NICB).

The investigation unearthed a pattern of fraudulent claims totaling 33 instances, all executed with a similar modus operandi. The perpetrators repeatedly made damage claims, often involving staged collisions or fabricated accidents. Insurance policies were procured using fictitious identities or involved parties that falsely reported claims as if they were unrelated.

The fraud ring employed an arsenal of at least 40 different vehicles, some of which were acquired with pre-existing damages, while others sustained damages in staged collisions. Moreover, it was discovered that the same PO Box address was used in multiple fraudulent claims submitted by different individuals, all asserting that the address was the location of their respective vehicles.