By Emily Miller
Over 100 law enforcement officers fanned out Wednesday across Riverside County, California and made over a dozen arrests in an alleged auto insurance fraud ring involving fraudulent collisions claims, according to authorities.
Owner of Lighting Auto Body, Joel Paredes Saldana, was one of the arrested members of the alleged insurance fraud ring.
Investigators from the Department of Insurance and multiples allies initially received information about the crime ring in 2013, when insurers recognized a pattern to Saldana’s and his co-conspirators’ insurance claims.
Saldana allegedly recruited at least 20 friends and family members for $500 each to claim collisions that were either staged or didn’t occurred at all, according to California Insurance Commissioner Dave Jones.
As the ringleader, Saldana allegedly engineered an elaborate crime ring that staged up to 16 false insurance claims to receive a payout of over $314,000 from seven difference insurance companies, including State Farm, Progressive and Century.
“This orchestrated phantom collision ring contributes to the multi-billion dollar drain on California’s economy due to insurance fraud,” said Commissioner Jones. “This is not a victimless crime. The cost of insurance fraud is borne by consumers who pay for it through higher premiums. Southern California is the auto fraud capitol of the nation.”
Commissioner Jones highlighted that the state of California with the assistance of its detectives and law enforcement officials are dedicated to shutting down scams such as these by following leads and arresting crime ring participates.
Those arrested will face multiple felony charges that include grand theft, knowingly filing a fraudulent insurance claim, and conspiracy.
