Arrests for Insurance Fraud and Grand Theft

Two men were arrested and charged with felony insurance fraud and grand theft after being investigated by the Special Investigation Unit within State Farm Insurance and the California Department of Insurance (CDI) Fraud Division. Mike I. Masarweh, 36, owner of All Pro Mechanicx, a San Francisco auto repair facility, and Bobby J. Nelson Jr., 36, of Suisun City, Calif. are being held on $35,000 bail.

According to investigators, Nelson had his 1992 GMC Typhoon truck insured by State Farm Insurance Company and on May 26, 2000, Nelson reported that his vehicle was stolen. The vehicle was then recovered on the same day, a few blocks from the All Pro Mechanicx shop where it was then towed to determine if it was damaged. Fraud investigators allege that on a later date, Masarweh and Nelson provided to State Farm a repair invoice showing that two months before the supposed theft, Masarweh’s shop installed a new engine into Nelson’s vehicle for $8,686 in cash. After the alleged theft and after an inspection by All Pro Mechanicx, Nelson claimed that the thieves seriously damaged the new engine in his vehicle. All Pro Mechanicx provided a new repair estimate to State Farm for $11,675. Nelson was paid the amount by State Farm to settle the claim.

At a later date investigators determined that Nelson did not have a newly installed engine in his vehicle and that the $8,686 invoice from All Pro Mechanicx was allegedly fraudulent. The total cost to State Farm is more than $22,000, which includes vehicle repairs, rental vehicle and investigative costs.

Topics Auto Fraud