Fraud Roundup

Mich. body shop owners defraud insurers of millions, Cox says

A woman and two sons who run a string of Detroit-area auto body shops have been charged with conspiracy, fraud and racketeering on accusations that they tricked insurers out of millions of dollars through false claims.

Attorney General Mike Cox said that the investigation dates back to September 2002, when State Farm Insurance investigators noticed a series of suspicious claims from Somerset Auto Center in Detroit.

Investigators said the first suspicious claims involved false reports of air-bag theft and “enhancing collision damage,” Cox said in a news release.

Cox announced the arrests of a man he identified as the ringleader, Norman Dehko, 35, of Orchard Lake; his brother, Dickow Dehko, 31; and their mother, Latifa Dehko, both of West Bloomfield.

Charges against the three include racketeering, conspiracy and fraud, Cox said. The racketeering charge carries a sentence of up to 20 years in prison, with lesser penalties for the other charges.

Others also are expected to be arrested and charged, Cox said.

Al Dabish, 34, a cousin of the Dehkos, said the family runs a legitimate business.

“It’s all about jealousy,” Dabish, a Detroit police officer, told the Detroit Free Press. “It’s other shops calling on them, and it’s all false.”

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

N.D. agent under investigation for fraud, found dead

Insurance Commissioner Jim Poolman is investigating whether some of an Underwood insurance agent’s customers have lacked coverage for years because she issued bogus policies and kept their premium payments. At least $300,000 is believed to be missing.

The agent, Diane Cottingham, was found dead on a McLean County section line road near Max, in west-central North Dakota, said Poolman, quoting McLean County Sheriff Don Charging.

Poolman said Cottingham’s vehicle was equipped with a GPS locator, and that she left a note that referred to wanting to help people and being unable to say no.

Cottingham had agreed to meet with him in Bismarck to sign an order in which she agreed to an immediate revocation of her insurance license, Poolman said. She did not appear.

Poolman said he contacted the McLean County sheriff’s department.

“This is incredibly unfortunate for her family. It’s unfortunate for the policyholders involved,” Poolman said. “My heart and prayers go out to the family. Our job is to obviously grieve for them, but we do have policyholders to protect and my job is to make sure those folks are taken care of.”

Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.