By Emily Miller
On June 13, 2014, the owner of 1st Class Collision in Phoenix was found guilty of forgery and insurance fraud charges after instructing employees to intentionally damage vehicles to collect additional insurance payments, said the Arizona Department of Insurance.
The Maricopa Country Superior Court found owner, Michael Griesa, guilty of Forgery – a Class 4 Felony and Insurance Fraud – a Class 6 Felony. The Court sentenced Griesa to one-year of probation, fined him $813 and ordered him to pay $1,9100 in restitution.
Former employees reported that Griesa instructed them to cause additional damages to vehicles coming into the shop, so he could file higher claims with insurers, the Arizona Department of Insurance said. Those ex-employees contacted Progressive Insurance about the suspicious activity that occurred from October 2010 through April 2012.
As a result, the insurance provided complained to the Department of Insurance who conducted an undercover investigation to figure out what was going on.
One former employee was able to provide before and after photos, which showed additional damages that occurred to the vehicle while at the body shop.
According to the company’s website, the body shop is described as a trusted business with an excellent staff that provides the highest quality of professional services regardless of the car condition.
Reviews from consumer websites – such as Yelp – supported statements made by the company on their website as most highlighted the quality of service.
One reviewer, who only had a flat tire, applauded the company for discovering her mother’s vehicle had more damage than initially thought.
Unfortunately, situations like this can happen to anyone at anytime but state insurance companies are setup to help identify and eventually stop corrupt companies from scamming their consumers.
Here are some helpful tips for choosing the right shop for you car:
1. Pay attention to word-of-mouth
2. Factor in operational costs and overhead
3. Get several estimates from several different companies
4. Ask questions
5. Get everything in writing
6. And, ultimately follow your gut
