Swerving for dollars 18 charged in organized auto fraud crime ring
News: 2017 Press Release
SAN JOSE, Calif. — Department of Insurance detectives and investigators with the Silicon Valley Organized Auto Insurance Fraud Task Force arrested 14 people and are seeking four additional suspects for allegedly running an organized auto insurance fraud ring netting conspirators approximately $150,000.
More than 75 felony charges were filed against 18 suspects, some of whom were arrested during a sweep last month, including the owner of Espinoza Body Shop in San Jose, Gerardo Ivan Espinosa Martinez, 31, and his wife, Eva Maria Espinoza, 29.
According to department detectives, the investigation revealed the crime ring allegedly staged 15 crashes and filed corresponding insurance claims receiving payouts totaling around $150,000 from six different insurance companies, including some of the largest auto insurers in the nation. Espinosa Body Shop was involved in seven of the 15 different false claims.
"Organized crime rings are not only responsible for the majority of staged collisions, they have also targeted innocent motorists and resulted in serious injuries," said California Insurance Commissioner Dave Jones. "Through the good work of our multi-agency task force, another dangerous organized crime ring has been put out of business."
After noting suspicious circumstances in a reported crash, an insurance company reported the claim to the National Insurance Crime Bureau (NICB), who referred the case to the Department of Insurance Silicon Valley Organized Auto Insurance Fraud Task Force.
Investigators found evidence that suspects purchased insurance policies shortly before the alleged accident and intentionally damaged or crashed cars into other vehicles owned by co-conspirators. The owners of the vehicles contacted their insurance companies and reported the same accident details. In most cases, insurers totaled the vehicles and paying the owners the full value for their cars. Many of the vehicles were used in the scheme multiple times including an aging Pontiac used in three separate staged accidents in a single year.
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Media Notes:
- This case is part of the Silicon Valley Organized Auto Insurance Fraud Task Force, comprised of the California Department of Insurance, California Highway Patrol (C.H.P), and Santa Clara County District Attorney's Office.
- List of suspects:
- Gerardo Ivan Espinosa Martinez, 31
- Eva Maria Espinosa, 29
- Juan Yepez Cruz, 32
- Cesar Maldanado Tafoya, 41
- Maria Ninfa Maldanado, 49
- Victor Manuel Olivar, 29
- Abraham Banos Melo, 37
- Rosalba Zuniga Rangel, 43
- Margarita Ramierez Rojas, 39
- Daniel Alberto Romera Cruz, 29
- Ann Maria Nunes Hall, 68
- Jose Be Jesus Curiel Quiroz, 40
- Rene Garcia Gamino, 33
- Ericka Demblewski, 41
- Alicia Rios Salinas, 30
- Juan Manuel Torres, 60
- Thomas Laverne Hall, Jr., 32
- Michelle Rosalba Hernandez Rangel, 23
- Victim insurers include: Esurance, Progressive, Farmers, Access Insurance, GEICO, and Kemper.
Led by Insurance Commissioner Ricardo Lara, the California Department of Insurance is the consumer protection agency for the nation's largest insurance marketplace and safeguards all of the state’s consumers by fairly regulating the insurance industry. Under the Commissioner’s direction, the Department uses its authority to protect Californians from insurance rates that are excessive, inadequate, or unfairly discriminatory, oversee insurer solvency to pay claims, set standards for agents and broker licensing, perform market conduct reviews of insurance companies, resolve consumer complaints, and investigate and prosecute insurance fraud. Consumers are urged to call 1-800-927-4357 with any questions or contact us at www.insurance.ca.gov via webform or online chat. Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.
