The proprietor of a Chalfont, Pennsylvania auto physique restore store submitted 289 false insurance coverage claims over a number of years to 4 insurance coverage firms, pocketing greater than $426,000 in payouts, in line with the Bucks County district legal professional.
District Legal professional Matt Weintraub stated that the proprietor of the restore store, John Paul Reis, turned himself in on Aug. 25, 2022 on costs of insurance coverage fraud, misleading enterprise practices, forgery and theft by deception, all third-degree felonies.
Weintraub stated the costs filed towards Reis are the results of a four-year investigation that started after a referral from Erie Insurance coverage’s particular investigations unit that alleged the Chalfont Collision Middle was enhancing and or creating harm to clients’ automobiles to inflate insurance coverage estimates. Investigators allege that Reis would wipe a compound combination onto the physique of a number of automobiles and typically strike them with a hammer, making it seem as if the automobiles had been concerned in an accident, in order that he may invoice insurance coverage firms for extra money.
Officers stated Chalfont Collision Middle was a direct restore middle for Erie Insurance coverage and different insurance coverage firms, that means it was approved to jot down estimates, full the repairs, and submit the estimate/billing paperwork for cost, dashing up restore time for patrons.
Bucks County detectives advised the courtroom they contacted investigative models of different insurance coverage firms and located that Erie Insurance coverage, Nationwide Insurance coverage, CSAA Insurance coverage Group and Liberty Mutual Insurance coverage collectively recognized 289 estimates that they stated contained “synthetic or inflated damages” within the estimates submitted by Chalfont Collision between 2014 and 2022.
The insurance coverage firms recognized $426,233.64 in fraudulent claims, together with 185 by Liberty Mutual Insurance coverage for $312,265.83.
Costs are solely allegations, and every defendant is presumed harmless until and till confirmed responsible past an affordable doubt.
“There’s a tendency for some folks to think about insurance coverage fraud as a victimless crime,” DA Weintraub stated. “That’s, till the monetary losses from these fraudulent claims are handed onto us within the type of larger insurance coverage charges.
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