Fraudulent Collision Shop
Two of our insurance company clients were noticing that a collision shop was perpetually defrauding them and their insureds. Collisions were staged, damages were enhanced at the shop, and the companies were being billed for new and OEM parts that were either not replaced or were replaced with junkyard parts. We worked with the companies to bundle multiple claims and sue the collision shop under the Motor Vehicle Service and Repair Act.
As trial approached, the shop, through its attorney, agreed to pay damages, and to enter into binding agreements with each of the insurance companies regarding future claims. After paying the damages, the leader of this collision shop has pled guilty to mail fraud charges brought by the U.S. Attorneys’ office.
