State Beat
Thursday, April 17th, 2003 Auto Fraud Legislation & Regulation Liability LitigationFarmers Insurance Exchange and Mid-Century Insurance served civil summons and complaints upon an Oakland body shop and a Ventura County body shop, their owners, former Farmers employees, and other co-conspirators, accusing them of taking part in a large-scale fraud scheme, according to the California Department of Insurance. Under the state’s anti-fraud statute, Farmers is seeking more than $12 million in damages. In Oakland, Farmers’ employees noticed a pattern of suspect claims coming from Phil-Am Complete Auto Services. Vehicles first were involved with vandalism claims, followed by claims in which the vehicles swerved to miss hazards, striking two parked cars. In all, Farmers uncovered 82 claims in which a vehicle swerved and struck parked cars.
