Thirteen people were arrested Friday following a lengthy investigation by the Merced County District Attorney’s office into an automobile insurance fraud ring involving 10 different insurance companies that paid out more than $430,000 in bogus claims for staged accidents around the county and elsewhere.
A Merced County Grand Jury indicted 21 people
in April for their role in orchestrating staged auto accidents and vandalism
and then submitting bogus claims. The scheme began in September of 2011 and
continued through June 2016 during which time there were 20 fraudulent claims
submitted to insurance companies for payment, District Attorney Larry D. Morse
II said.
The insurance fraud ring was brought to light in January 2016 when an
investigator with the Special Investigation Unit of Allstate Insurance
contacted Merced County District Attorney Investigator Sheri Carpenter
regarding a claim that she believed was a staged accident. Carpenter started her investigation by
running the names through an insurance database provided by the National
Insurance Crime Bureau which linked the claim to 19 other similar claims.
During the investigation it was discovered that some of the same vehicles were
used for multiple claims, with the same damage being reported. The main method of theft, according to
Carpenter, came from the alteration of hospital bills that were submitted by
the suspects to the insurance companies for which they were paid directly. Carpenter found that many of the same bills
were used in multiple claims with the names and dates of service being altered
to reflect a new claim date. In some cases,
she noted, the totals on the hospital bills were altered to reflect a larger
amount so that the payouts to the suspects would be higher.
“Not only is insurance fraud a crime, it costs Merced County residents
substantially more in premiums and insurance costs every year,” Morse
said. He praised the work done by
Carpenter in “unraveling this sophisticated and far reaching conspiracy to
defraud insurance companies and consumers.
Investigator Carpenter worked this complex case relentlessly for the
last two years in addition to her other work and did an incredible job of
putting all the pieces together. It was
a first rate effort,” Morse said.
According to the National Insurance Crime Bureau auto related insurance fraud,
particularly staged accidents, are a significant component of the $30 to $32
billion lost to insurance fraud each year.
“Unfortunately, many individuals view insurance companies as their personal
piggy banks and they engage in fraudulent behavior without any concern for the
economic harm they cause all consumers,” said Frank Scafidi, public affairs
director for the NICB. “NICB commends
District Attorney Morse and the participating law enforcement agencies for
their diligence and extensive investigative efforts in this case.”
Joanna Tucker, 29, from Livingston, was described by Carpenter as the
“ringleader” of the scam and directly involved in 19 of the 20 claims.
Deputy District Attorneys Walter Wall and Scott Drexel presented the case over
several days to a Merced County Grand Jury last month which returned with 19
felony counts of insurance fraud and 17 felony counts of grand theft against
Tucker. The grand jury also handed down
indictments of 20 other defendants on charges of insurance fraud and grand
theft.
Tucker’s boyfriend, Johnathan Huerta, 30, also of Livingston, was indicted on
10 felony counts of insurance fraud and nine counts of grand theft.
Investigators from the District Attorney’s office, with assistance from Merced Sheriff’s
Department, Merced Police Department, Merced County Probation, Livingston
Police Department, Atwater Police Department, State Parole and the Merced Area
Gang and Narcotics Enforcement Team (MAGNET), arrested Tucker, Huerta and 11
other defendants in a coordinated sweep on Friday. Tucker was being held on
$500,000 bail. Huerta’s bail was set at
$100,000, Carpenter said.
Three defendants were already in custody outside Merced County on unrelated
charges, Carpenter noted.
Also taken into custody Friday were Rhonda Valencia 45, Diana Tucker 26, and
Freddy Barajas 29 all of Livingston; Jessica Valencia 27, Alejandro Cervantes
31, Patricia Diaz 31 and Angelina Galvan 35 all of Atwater; Britney Groves 29,
Charlece Scott 27, and Monique Eguiluz 28 all of Merced.
Others for whom arrest warrants have been issued were Maria Hernandez, 59,
Celina Garza-Hernandez, 27 and Sarai Bernal, 27 all of Merced; Rico Tucker, 28,
Carlos Tucker, 26, Heena Birly, 25, and Jessica Barajas, 30 all of San
Jose and Jairo Barajas, 29 of Livingston