SAN DIEGO–District Attorney Bonnie Dumanis announced the results of a statewide auto insurance fraud sweep—‘Operation Crash and Buy’— that resulted in felony charges being filed against dozens of defendants locally.

In nearly all of the cases, drivers who had no auto insurance, or were underinsured purchased or added coverage after a collision or damage was sustained.  Suspects then filed a fraudulent claim in an attempt to get the insurer to cover the damage to the uninsured vehicle.  Altogether, District Attorney Offices in 22 counties have filed 171 felony and 28 misdemeanor charges against 187 people for alleged auto insurance fraud committed against 40 insurance companies.  The San Diego District Attorney’s Office filed a total of 84 felony charges against 35 defendants in 30 criminal cases.

“Our Insurance Fraud Division continues its track record of holding accountable those who would commit this type of fraud, and ultimately these types of prosecutions help protect the consumer,” said DA Dumanis. “These types of scams result in higher rates and premiums, especially for those customers who are insured by the companies hardest-hit by fraud.”

The District Attorney’s Office worked cooperatively with detectives from the Department of Insurance and local law enforcement to investigate these cases.  The defendants were notified of the charges through letters hand-delivered by law enforcement officers.  They have arraignment dates in late November in San Diego Superior Court downtown, South Bay, North County, and East County.

Charges include Presenting a False Insurance Claim, Concealing an Event Effecting Insurance Claim, Attempted Arson, and Filing a False Police Report.

Unfortunately, this type of insurance crime is surprisingly common,” said Insurance Commissioner Dave Jones.  “Insurance fraud is an expensive drain on the state’s economy that totals into the billions of dollars annually in California.  This is not a victimless crime. The costs of these scams are passed along to consumers through higher rates and premiums–everyone pays for insurance fraud.”

In some cases the fraud was uncovered before the insurer paid on the claim, in others it was discovered after the claims were paid.  Detectives suspect that the actual and potential losses to insurers in California totaled more than $1 million.

“Operation Crash and Buy’ is another example of the outstanding working relationship the DA’s Office has with the Department of Insurance in San Diego,” said Deputy District Attorney Dominic Dugo, Chief of the Insurance Fraud Division. “Together, we are effectively reducing insurance fraud in the county.”

Report insurance fraud to the San Diego District Attorney Insurance Fraud Hotline at 1-800-315-7672.