Another auto insurance fraud scheme in California leads to two arrests

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Two Californians have been arrested and charged with crimes relating to auto insurance fraud after incorrectly reporting a car accident in an attempt to get money.

Two Californians have been arrested and charged with crimes relating to auto insurance fraud after incorrectly reporting a car accident in an attempt to get money.

Twenty-four-year-old Juan Carlos Valencia and 23-year-old Linda Maria Jenny Jaramillo both surrendered to police on August 28 and August 31 respectively after the California Department of Insurance's Urban Auto Fraud Task Force uncovered a suspicious timetable involving accident involving the two along with their purchasing of auto insurance.

Following a car accident on May 26 in which Jaramillo's car was struck as she pulled out of a parking spot. After telling the driver of the other car that she didn't have her insurance information, she promised to call and provide it at a later time.

However, Jaramillo and Valencia then allegedly drove directly to an insurance office, took out an auto insurance policy, and then called the insurance company after leaving to report that an accident had occurred on the way home from the office. She later called the other accident victim to give the newly acquired insurance information at home.
Following the subsequent investigation launched by the insurance company, both Jaramillo and Valencia confessed to lying about the order in which the events happened.
"Insurance fraud perpetrators drive up the cost of insurance for everyone," said state Insurance Commissioner Steve Poizner. "No matter what your financial situation is, attempting to defraud an insurance company never pays and is always illegal. CDI detectives will continue to track down anyone who attempts to commit auto insurance fraud."

Bail was set at $15,000 for both suspects, who could each face up to five years in prison along with $10,000 in fines.

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Posted: September 15, 2009

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