Your Source for Up-To-Date News and Research on the Collision Repair Industry 

 

click here to subscribe to the FREE INSIGHT Editor's Desk News Alert Email

SUBSCRIBERS-ONLY
Today's News
INSIGHT This Month
INSIGHT Archives
Survey Center
Letter to the Editor

Business Tools
Subscription Information
CSI Reporting
Financial Analysis
IRS Audit Guide

Management/
Technical Info
Market Watch Rates
INSIGHT Inside this month's issue...

Feedback
Letter to the Editor

Progressive-Funded Pennsylvania Insurance Fraud and Auto Theft Investigation Nets 110 Arrests and 66 Recovered Vehicles

PITTSBURGH -- Progressive Corporation has announced a successful end to a multi-year vehicle theft and insurance fraud investigation it funded. The investigation, conducted by the Pittsburgh Police Department and The Allegheny County District Attorney's office, ended today and netted a total of 110 arrests and the recovery of more than 66 stolen vehicles.

Progressive's Special Investigations Unit (SIU), a countrywide team of more than 170 professionals dedicated to investigating and prosecuting those involved in insurance fraud, provided $10,000 and two "bait" cars to the operation which targeted individuals who "gave up" their vehicles and those who were stealing, then selling, vehicles. Individuals who give up a vehicle are said to do so because of the ridiculously low price they charge someone to buy it. They, in turn, report the vehicle stolen and collect the insurance money.

The money put up by Progressive gave local law enforcement the funding they needed to make the vehicle purchases from unscrupulous individuals. The $10,000 enabled undercover officers to purchase approximately 66 stolen vehicles valued at nearly $1 million. The donated bait cars enabled law enforcement to catch car thieves in action. The operation resulted in the arrests of 62 individuals.

Earlier this year, the operation also led to the arrests of 44 tow truck drivers and four operators of D&D Auto Salvage. D&D paid tow truck drivers to bring stolen cars to the salvage yard. D&D then crushed them illegally and made a profit selling the metal to scrap yards. Records for more than 700 crushed vehicles have been confiscated from the yard and are under investigation.

"Our customers tell us they want lower insurance rates," said Vince Coyne, Special Investigations Unit Manager for Progressive. "One way we can help to keep the cost of insurance down is by helping local law enforcement in operations like this. This operation sends a clear message to people in Pittsburgh: If you want to make a living stealing cars or operating chop shops, you're not going to do it here."

"Auto theft has been a major problem in Pittsburgh. From January to August of this year, nearly 2,600 cars were stolen in the city," said William Mullen, Assistant Chief, Pittsburgh Police Department. "As a result of this operation, the auto theft rate has dropped 29 percent overall and 80 percent on the weekends. We could not have conducted an investigation like this without our brave undercover officers and funding from companies like Progressive."

According to the National Insurance Crime Bureau (NICB), insurance fraud costs Americans over $20 billion year. A recent survey of 31,000 people conducted by Progressive, revealed that nearly one in ten of Americans would be willing to commit insurance fraud if they knew they would not be caught.

Coyne said: "Consumers should be outraged by insurance fraud because it costs each of us over $200 every year in the form of increased insurance premium. The goal of our Special Investigative Units (SIUs) is to help keep the cost of auto insurance down for all consumers by fighting fraud. Consumers can help too by being aware of fraud and willing to report it."

Consumers who wish to report fraud can call the National Insurance Crime Bureau at 1-800-TEL-NICB (835-6422).

Progressive, headquartered in Mayfield Village, Ohio, is the nation's fourth largest auto insurance company. In business since 1937, the company provides all drivers with competitive rates and 24-hour, in-person and online services.

©2000 Collision Repair Industry INSIGHT
All Rights Reserved

FEATURED
LINKS:

INSIGHT Supports the NABC!
Do You?