SAN DIEGO (Press Release)–Insurance Commissioner Steve Poizner announced on Wednesday the arrests of eight suspects in connection with an auto fraud ring case. The individuals arrested under Operation Hit and Run are suspected of faking traffic collisions and filing fraudulent personal injury claims with insurance companies. Since October 2009, 11 suspects were arrested in connection with this fraud ring.
“Criminals who involve themselves in elaborate and dangerous schemes to make an extra buck are endangering their own lives and the lives of other drivers,” said Commissioner Poizner. “I am pleased with the hard work of CDI investigators and fraud task force members who uncovered this fraud ring.”
On April 21, the San Diego Automobile Insurance Fraud Task Force arrested eight suspects. The arrests relate to a series of staged accidents where suspects faked traffic collisions, were transported to a local hospital for treatment and filed personal injury claims with the insurer. Based on arrest warrants obtained on October 29, 2009, the San Diego Automobile Insurance Fraud Task Force arrested a total of 11 defendants in relation to this investigation and charged 83 felony counts.
The arrests are tied to five separate staged traffic collisions. The collisions all have a similar fact pattern of a vehicle being struck by an abandoned vehicle that was previously reported stolen. The suspects to be arrested are all connected by family relationships, police contacts, and connections to the primary suspect in this case, Jay Stoney Anderson.
In all five traffic collisions, there were identical motives and facts of loss. The collisions were allegedly staged and police were called to the scene. When the police arrived, the vehicle at fault was always determined to be abandoned at the scene and had previously been reported stolen by the registered owner. In each case, the suspects claimed to be injured and were transported via ambulance to a local emergency room for treatment. The suspects each filed personal injury claims with the insurer and failed to reimburse the hospital for the outstanding bill. The total loss in this case exceeds $200,000.
CDI launched an investigation when Liberty Mutual Insurance Company and Progressive Insurance Company notified the Department of possible fraud. The Special Investigation Units of these companies met with representatives of the San Diego Automobile Insurance Fraud Task Force to share information. The information provided later identified a criminal ring suspected of staging more than eleven collisions over a one-year period. Additional information in support of this investigation was provided by Special Investigation Units from Republic Western Insurance Company, AIG, 21st Century Insurance Company, GEICO Insurance, and Nationwide Mutual Insurance.
The comprehensive investigation revealed multiple alleged connections between the suspects and Jay Stoney Anderson and the abandoned vehicles. In two of the collisions charged, the suspects allegedly used a rented U-Haul that was later reported stolen and used to stage the traffic collisions.
Arrested on April 21 were: Tamar Bradley, Wade Bradley, Michael Jones, Jiaire Martin, Rodney Martin, Shareese Spence, George Thomas, and Frank Torbert III.
The office of San Diego District Attorney Bonnie Dumanis is prosecuting this case. All suspects are expected to be arraigned in San Diego Superior Court.
The San Diego Automobile Insurance Fraud Task Force is made up of members from the California Department of Insurance, San Diego District Attorney’s Office, California Highway Patrol-Border Division, and the National Insurance Crime Bureau.
Commissioner Poizner oversees sixteen CDI Enforcement Branch regional offices throughout the state. Nearly 2,800 insurance fraud-related arrests have been made by CDI since Commissioner Poizner took office in 2007 – more arrests than have been made during any other three year period, under any previous insurance commissioner.
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Preceding provided by Steve Poizner, now a Republican candidate for governor. He and District Attorney Bonnie Dumanis both are members of the Jewish community.