Repair Shop Caught in Insurance Fraud Scheme

Dec. 11, 2020
Evidence found multiple shop workers purposefully inflicted damage at shops where insurance was later billed.

Dec. 11, 2020—Multiple auto repair shops in New York were caught in an alleged insurance fraud scheme, reported CBS2

The Westchester District Attorney reported finding evidence of the scheme at six auto repair shops where surveillance video appeared to capture workers deliberately damaging vehicles. 

Video of two specific incidents show a worker driving one vehicle to scrape the side of another, and in another, a shop worker appeared to use a sledgehammer to damage the side of vehicle to drive up the price of repair. 

After inflicting the damage, repair shops in Westchester and the Bronx later allegedly billed insurance companies to repair the damage, with totals estimated in the range of hundreds of thousands of dollars over the course of a year. 

The incidents were investigated as the District Attorney opened a criminal enterprise probe when insurance companies reported multiple questionable claims. Court-approved surveillance cameras were used to gather evidence. 

Sponsored Recommendations

Free Resources for Shops Like Yours

View insights, research and solutions curated specifically for shops like yours.

Restore & Protect: The Powerful Revenue and Profit Accelerator for Your Business

Restore & Protect is a major business opportunity for Valvoline installers with positive impact on profit growth as well as customer satisfaction and loyalty.

Deliver a First-Class Guest Experience

Our dedicated Valvoline Trusted Advisor Sales and Support Team provides hands-on classroom and targeted in-store coaching to help your employees become more skilled at selling...

Promote Growth on Two Fronts: Existing and New Customers

Increase Sales and Customer Traffic To Your Store(s).