California Man Arraigned on 14 Counts of Insurance Fraud in ‘Paper Collision’ Scheme

Farrukh Hussain, 37, of Eastvale, California, was arraigned on 14 felony counts of insurance coverage fraud after allegedly stealing customers’ identities to file 14 fraudulent insurance coverage claims with six totally different insurance coverage firms utilizing a “paper collision” scheme – which means many of the accidents by no means occurred and solely existed on paper.

The California Division of Insurance coverage launched an investigation after a number of insurance coverage firms flagged claims that they’d acquired. An investigation reportedly discovered that Hussain stole his sufferer’s insurance coverage data and posed as that particular person to report accidents the place he was the opposite get together concerned.

Whereas posing as his victims, Hussain would allegedly admit fault to the accident and request their contact data be up to date to his personal cellphone quantity so the insurance coverage firm would contact him relating to the claims as a substitute of the true policyholder with a view to get away with the scheme.

Detectives reportedly found Hussain obtained his victims’ insurance coverage data whereas their autos have been being labored on at a stereo and tint store in Covina the place he was beforehand employed for a short while as a “sales-helper,” and he’s suspected of acquiring victims’ data whereas brokering car purchases for them.

Hussain reportedly used two BMWs, which he owned, that had pre-existing harm and introduced the identical harm on every declare he filed. Most of the claims have been for “paper collisions,” however in a single occasion, Hussain was reportedly in a position to receive one sufferer’s data from a site visitors collision report by way of a legit accident.

Hussain’s alleged actions resulted in a complete lack of $17,293 to 6 totally different insurance coverage firms.

This case is being prosecuted by the Los Angeles County District Lawyer’s Workplace.

Farrukh Hussain, 37, of Eastvale, California, was arraigned on 14 felony counts of insurance coverage fraud after allegedly stealing customers’ identities to file 14 fraudulent insurance coverage claims with six totally different insurance coverage firms utilizing a “paper collision” scheme – which means many of the accidents by no means occurred and solely existed on paper.

The California Division of Insurance coverage launched an investigation after a number of insurance coverage firms flagged claims that they’d acquired. An investigation reportedly discovered that Hussain stole his sufferer’s insurance coverage data and posed as that particular person to report accidents the place he was the opposite get together concerned.

Whereas posing as his victims, Hussain would allegedly admit fault to the accident and request their contact data be up to date to his personal cellphone quantity so the insurance coverage firm would contact him relating to the claims as a substitute of the true policyholder with a view to get away with the scheme.

Detectives reportedly found Hussain obtained his victims’ insurance coverage data whereas their autos have been being labored on at a stereo and tint store in Covina the place he was beforehand employed for a short while as a “sales-helper,” and he’s suspected of acquiring victims’ data whereas brokering car purchases for them.

Hussain reportedly used two BMWs, which he owned, that had pre-existing harm and introduced the identical harm on every declare he filed. Most of the claims have been for “paper collisions,” however in a single occasion, Hussain was reportedly in a position to receive one sufferer’s data from a site visitors collision report by way of a legit accident.

Hussain’s alleged actions resulted in a complete lack of $17,293 to 6 totally different insurance coverage firms.

This case is being prosecuted by the Los Angeles County District Lawyer’s Workplace.