NJ truck repair shop at center of $ 2.7 million insurance fraud scheme
The owner of a truck repair shop in New Jersey and eleven others are charged with racketeering, insurance fraud and theft by deception for their involvement in a plan, which resulted in an underpayment of 2 , $ 7 million in bonuses in 2021, according to the Warren County District Attorney’s Office.
The store owner allowed various agents and producers to list his store address as the garage address of about 170 trucking companies, saying nearly 400 trucks were parked on the premises while the premises could only fit around thirty vehicles. Insurer employees have noticed a large number of inquiries from commercial trucking companies claiming garage vehicles at the same address. Surveillance proved that none of the vehicles in question was parked on the site.
The investigation into the scam was conducted by the Warren County District Attorney’s Office, the Sussex County District Attorney’s Office and the New Jersey Auto Insurance Plan.
Insurance premiums are particularly low in this region, and the producers involved would offer the vehicle owner the option of claiming that the vehicles were parked at the premises in question when quotes for the actual garage address were expensive.
Policyholders were told that they did not have to locate the vehicles there, they were simply being used for insurance purposes. In fact, these vehicles could be found as far away as North Carolina and New York. While the fee represents $ 2.7 million in underpaid premiums in 2021, a total of $ 20 million has been underpaid in premiums since 2018.
“I am extremely proud of the success of the joint investigation into insurance fraud in Warren and Sussex counties. The inquest resulted in the arrest of a dozen people whose actions were costing the citizens of New Jersey and Warren and Sussex counties millions of dollars a year in increased insurance premiums, ”said the Warren County Attorney James Pfeiffer in a statement. “Insurance fraud is estimated to cost consumers $ 40 billion per year, resulting in increased insurance premiums for families of more than $ 700 per year.”