A four-year investigation into an organized fraud ring has uncovered a million dollar scheme targeting high-end vehicles through auto loan and insurance fraud. Multiple teams from the California Department of Insurance executed coordinated arrest warrants of the suspects in the early morning hours of Friday, May 23, 2014.
“This organized fraud ring filled their pockets by ripping off insurance companies and auto dealers. These individuals conspired to purchase and lease vehicles with the sole intent to default on the loans and make bogus insurance claims,” said California Insurance Commissioner Dave Jones.
The alleged fraud ring purchased or leased high-end vehicles, many of which were acquired fraudulently by various individuals who lied about their employment or income on credit applications to qualify for loans or leases. The suspects then defaulted on the loans and leases while at the same time filing false insurance claims on the defaulted vehicles.
A total of 18 dealerships were defrauded. The scheme involved more than 20 new luxury vehicles and five used vehicles as well as an additional three that have been exported from the country.
Source: California Department of Insurance
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