Tehama County

Office of the District Attorney

AUTOMOBILE INSURANCE FRAUD

DA Tip Line

1-800-556-0027

The Tehama County District Attorney’s Office, in conjunction with the California State Department of Insurance’s Fraud Unit, will investigate and prosecute automobile insurance fraud cases occurring in Tehama County. Automobile Insurance Fraud cases are generally felonies and can be punishable by sentencing to state prison. The Tehama County District Attorney’s Office may investigate these crimes independently or jointly with the State of California Department of Insurance’s Fraud Unit.

Automobile Insurance Fraud poses a huge problem in the State of California. The insurance industry estimates that auto fraud scams cost consumers anywhere from $15 billion to $20 billion annually. The Insurance Research Council estimates that, nationwide, one third of all bodily injury claims for auto insurance accidents contain some fraud. The majority of this figure stems from the padding or exaggeration of injuries, but the reality is that the opportunity to cheat the system is taken advantage of by not only the claimant, but by doctors and lawyers as well. Automobile insurance fraud takes many forms, such as:

• Padding of insurance claims;
• Auto body shop billing fraud;
• Staged accidents;
• Attorney embezzlement of insurance company settlements funds;
• Phantom accidents;
• Capper operations;
• Organized theft rings;
• Insurance broker billing schemes and insurance company personnel conspiring with other individuals to defraud their own employers
• Automobile arson;
• Chop-shops;
• Medical provider billing fraud;

Investigators from the Tehama County District Attorney’s Bureau of Investigation are assigned to investigate illegally obtained insurance benefits from either Automobile insurance or from Workers’ Compensation. The crimes targeted by these investigators are primarily 550 California Penal Code- False or fraudulent claims or statements, 1871 California Insurance Code- The Insurance Fraud Prevention Act, 118 California Penal Code- Perjury, and 487 California Penal Code- Grand Theft. Individuals investigated for one or more of these crimes are frequently involved in other criminal activity. Insurance fraud costs all consumers significant monies each year and individuals committing these crimes are actively investigated.

The investigative activities are funded through grants from the State of California Department of Insurance (DOI). Information received by Tehama County Investigators may be provided to DOI as investigations and actions may also be taken by DOI and insurance companies.