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News: 2010 Press Release

For Release: June 10, 2010
Media Calls Only: 916-492-3566
Commissioner Poizner Announces San Jose Man Arrested in Alleged Street Racing-Related Insurance Fraud

Insurance Commissioner Poizner today announced the arrest of a San Jose man for automobile insurance fraud. Keith Alves, 23, was arrested and booked at the Santa Clara County Jail on a $25,000 felony warrant for auto insurance fraud. If convicted, he could face up to five years in prison and/or $10,000 in fines.

"Lying about your involvement in a hit-and-run car accident will not save you from trouble - it will only compound your problems," said Commissioner Poizner. "Do not try to skirt the law or lie to authorities, you will get caught."

On December 21, 2007, a hit and run vehicle accident occurred on Patrick Henry Dr. near Tasman in the city of Santa Clara. A witness indicated the vehicle involved in the accident had been involved in illegal street racing just prior to the collision. Police made contact with the registered owner, who indicated that his son Keith Alves may have had the car. Keith was not at home at the time of the accident. A subsequent police report was made by the registered owner and his son several hours later when the son returned home. Keith Alves and his father filed a stolen vehicle report and claimed the vehicle must have been stolen from the driveway of the registered owner's house in San Jose where it was last seen. Both men denied knowing anything about the accident.

During the course of the investigation, Keith Alves confessed that he was driving the vehicle at the time of the accident. He admitted to providing false information to the insurance company and to giving false information to San Jose Police Officers at the time the stolen vehicle report was made. He claimed his father was not involved in the cover up.

Keith Alves allegedly made a material misrepresentation to the Allstate Insurance investigator when he was questioned about who was driving the vehicle at the time of the accident. He also made a false claim that the vehicle was stolen from his father's driveway.

The Allstate Special Investigations Unit (SIU) assisted CDI with this investigation.

The case is being prosecuted by the Santa Clara County District Attorney's Office.

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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