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Authorities bust alleged car insurance scam
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Posted on May 27 2008
Authorities have busted a group of persons who were allegedly involved in a car insurance scam, possibly in connivance with a law enforcer.
Saipan Tribune learned that police arrested over the weekend two suspects—an insurance company employee and a former staff of another insurance firm.
The two men were taken to the Superior Court yesterday afternoon.
Presiding Judge Robert C. Naraja, who appeared not aware of the scheduled hearing, talked with chief prosecutor Kevin Lynch. After a brief moment, Naraja announced that the case against the two defendants is sealed.
Sources said that investigators have already arrested a woman and questioned a law enforcer of his possible involvement in the scam.
Sources said the Attorney General’s Investigative Unit is the one leading the investigation at request of an insurance company that is a victim of the scam.
In the scam, the suspects involved are insurance company employee or employees, auto shops, and a law enforcer.
The suspects would collect money from the insurance company by filing fraudulent police reports about vehicular accidents.
A minor accident would be reported as major damage to the vehicle.
A police report on a car accident that actually never happened would also be produced to collect insurance benefits.
“The investigators have been looking into this scam for more than two years now,” another source disclosed.
