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Auto Insurance Information and News » 41 Charged for Multi-Million Dollar Auto Insurance Fraud Scheme in Philadelphia

41 Charged for Multi-Million Dollar Auto Insurance Fraud Scheme in Philadelphia

41 Charged for Multi-Million Dollar Auto Insurance Fraud Scheme in Philadelphia
News from Insurance Journal:

The Philadelphia district attorney’s office has charged 41 people for what prosecutors described as a multi-million dollar auto insurance fraud scheme.

Prosecutors allege Ronald Galati Sr. and his co-conspirators ran their fraud scheme from Galati’s auto repair shop, American Collision and Auto Center in Philadelphia. Individuals charged in the alleged scheme include a former Philadelphia police officer, former insurance company adjusters and tow truck drivers, according to the district attorney’s office.

Prosecutors said these charges stem from a 16-month grand jury investigation of Galati’s auto repair shop. Progressive and Erie Insurance provided referrals and documentation which first brought American Collision’s suspicious claims to light.

Investigators alleged the Galati family used the auto repair shop as a corrupt organization from which to file fraudulent insurance claims. During the past four years, victim insurance companies issued payments totaling over $ 2,311,288 for fraudulent claims submitted from American Collision.

According to prosecutors, American Collision established a pattern of filing fraudulent claims with insurers that would routinely fall into one of the following five scenarios: fictitious deer accidents; vandalism; vehicular damages from falling objects; enhanced damages that compensated for w…………… continues on Insurance Journal

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