A California man, Farrukh Hussain, 37, of Eastvale, California, has been arraigned on 14 felony counts of insurance fraud over purported accident claims that never occurred and only existed on paper known as ‘Paper Collision’ scheme.
He was arraigned by the Los Angeles County District Attorney’s Office, after allegedly stealing consumers’ identities to file 14 fraudulent insurance claims with six different insurance companies.
After multiple insurance companies flagged claims that they had received, the California Department of Insurance launched an investigation.
The investigation led to the discovery that Hussain stole his victim’s insurance information and posed as that person to report accidents where he was the other party involved.
Hussain, while posing as his victims would allegedly admit fault to the accident and request their contact information be updated to his own phone number so the insurance company would contact him regarding the claims instead of the real policyholder.
He is reported to have used two BMWs, which he owned, that had pre-existing damage and presented the same damage on each claim he filed. Many of the claims were for “paper collisions,” but in one instance, Hussain was reportedly able to obtain one victim’s information from a traffic collision report through a legitimate accident.
Investigators found out that he obtained his victims’ insurance information while their vehicles were being worked on at a stereo and tint shop in Covina where he was previously employed for a short time as a “sales-helper,” and he is suspected of obtaining victims’ information while brokering vehicle purchases for them.
Hussain’s alleged actions resulted in a total loss of $17,293 to six different insurance companies.