Monday, 15 March 2010
Auto Insurance Fraud Spoiled by YouTube Video
Recently in California, Jay Xi Chen and his sister, Tracy Chen Chen were arrested for felony auto insurance fraud charges. The Chens filed alleged false auto insurance claims for Jay’s Nissan GT-R. Jay Xi Chen is charged with six counts of fraud and his sister is being charged with one.
On March 16 2009, Jay Xi Chen called his auto insurance company and claimed that his sister was involved in an accident on Interstate 10. Tracy Chen Chen went along with the story but then Jay withdrew his claim and said that he would pay for the repairs. On June 2, 2009, Jay filed another claim for the same car and said that he crashed his automobile while on Highway 60. However, his story did not match the ICC Collision Center’s report that Jay’s car had been in its shop since March.
To top if off, auto insurance fraud teams found a YouTube video of a street race resulting with a crash of Jay’s Nissan GT-R. The damages filed by Jay Xi Chen resemble the damage to the car on the YouTube video.
According to Claims Journal, each count could result in up to five years in prison and/or $10,000 in fines.
Auto insurance fraud and staged auto crashes have been increasing across the nation. In response to these increases in criminal activity, many states have implemented fraud investigation teams. The Inland Empire Organized Automobile Fraud Interdiction Team investigated the fraud case with the California Highway Patrol and Chen’s auto insurance company.
It took the investigation teams six months to gather all of the information needed for the Chen’s case; hopefully, prosecuting incidents like this will result in fewer numbers of insurance fraud cases and deter criminals.
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