Californian indicted on 14 counts of insurance fraud in “paper collision” program


Farrukh Hussain, 37, of Eastvale, Calif., Was arraigned on 14 counts of insurance fraud after allegedly stealing the identities of consumers to file 14 fraudulent insurance claims with six insurance companies different insurance using a “paper collision” system – meaning that most accidents never happened and only existed on paper.

The California Department of Insurance opened an investigation after several insurance companies reported the claims they had received. An investigation reportedly revealed that Hussain stole his victim’s insurance information and impersonated that person to report accidents where he was the other party involved.

While posing as his victims, Hussain allegedly admitted fault for the accident and requested that their contact details be updated with his own phone number so that the insurance company contacted him about the claims instead of the real policyholder in order to get away with the scheme.

Detectives allegedly discovered that Hussain obtained insurance information from his victims while their vehicles were being repaired at a stereo and dye store in Covina where he had previously been employed for a short time as an “assistant. commercial ”, and he is suspected of having obtained casualties. information while negotiating vehicle purchases for them.

Hussain allegedly used two BMWs he owned that had pre-existing damage and would have the same damage on every claim he filed. Most of the claims were for “collisions on paper,” but in one case, Hussain could have gotten a victim’s information from a traffic collision report through a legitimate accident.

Hussain’s alleged actions resulted in a total loss of $ 17,293 for six different insurance companies.

This case is being pursued by the Los Angeles County District Attorney’s Office.

Subjects
California fraud

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