7 arrested for auto insurance fraud scheme
The Riverside County District Attorney’s Office has released information about a large automotive insurance fraud scheme that reportedly led to a loss of more than a half million dollars.
Seven people were arrested for the alleged violations on Tuesday but arrest warrants have been issued for 40 defendants, according to DA Mike Hestrin’s release.
The 36 criminal complaints include more than 200 felony counts for crimes committed at seven auto body shops across the Coachella Valley, authorities said. The scheme involved staging up to 40 false insurance claims from which payouts totaled $560,492 from 10 different insurance companies.
Along with the seven people arrested on Tuesday, authorities said about 20 more defendants are in the process of being contacted by law enforcement.
Arrested Tuesday: Isaac Espinoza Villa, DOB: 7-23-84; Luz Virgin, DOB: 12-13-74; Samuel Salvador Gomez, 11-21-74; Moises Saldana Paredes, DOB: 7-30-89; Mauricio Lopez-Castro, DOB: 9-15-87; Jose Manuel Luna, DOB: 5-23-66; and Erika Feliz, DOB: 12-28-80. Authorities released three of the booking photos Tuesday afternoon.
All of them live in the Coachella Valley.
Investigators from the Department of Insurance initially received information about this crime ring in 2014, as part of a previous investigation in which individuals were charged with running a similar scheme.
“Insurance fraud schemes like this one steal from our local communities in the form of higher premiums,” Riverside County District Attorney Mike Hestrin said. “The insurance fraud perpetrated by these defendants is alleged to have caused a loss of more than $500,000; a cost that ultimately is passed on to consumers. We have to do everything that can be done to stop these criminals from defrauding the public.”
The arrests were made by California Department of Insurance detectives and investigators with the Urban Auto Insurance Fraud Task Force, which includes a Riverside County DA’s investigator.
“This was an elaborate conspiracy to rip off insurers to the tune of near a half a million dollars,” state Insurance Commissioner Dave Jones said. “Insurance fraud is not a victimless crime. The cost of fraud is shouldered by consumers who pay higher premiums when insurers pass along their losses. The task force is a critical tool in combating the multi-billion-dollar problem of insurance fraud.”
The case is being prosecuted by Deputy District Attorney Mark Zubiate of the DA’s Insurance Fraud Team. KESQ News Channel 3 and CBS Local 2 will keep you updated as investigators continue to move forward with the case.
