Investigators with the California Department of Insurance (CDI) Criminal Investigations Branch’s Fraud Division announced the arrest of Mike I. Masarweh, 36, owner of All Pro Mechanicx, a San Francisco auto repair facility. Also arrested was Bobby J. Nelson Jr., 36, of Suisun City, California. Both men are charged with felony insurance fraud and grand theft. Bail is set at $15,000 for Masarweh and $25,000 Nelson.
According to investigators, Bobby Nelson Jr. had his 1992 GMC Typhoon truck insured by State Farm Insurance Company. On May 26, 2000, Nelson reported to the Fairfield Police Department and to State Farm that his vehicle was stolen. On that same day his vehicle was recovered on 10th Street in San Francisco, a few blocks from the All Pro Mechanicx shop located on Harrison Street. The vehicle was towed to All Pro Mechanicx in order 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 alleged theft of Nelson’s vehicle, Masarweh’s shop installed a new engine into Nelson’s vehicle. Masarweh and Nelson provided to State Farm an invoice that allegedly showed that Nelson paid $8686 in cash to All Pro Mechanicx on March 20, 2000. After the alleged theft and after an inspection by All Pro Mechanicx, Nelson claimed that his new engine in his vehicle was seriously damaged by the thieves. All Pro Mechanicx provided a new repair estimate to State Farm for $11,675. State Farm Insurance Company paid Nelson $11,675 in order 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 $8686 invoice from All Pro Mechanicx was fraudulent. In fact, investigators allege that Nelson’s vehicle had not had any major repairs and that the engine in his vehicle was the original engine.
The total cost to State Farm is more than $22,000, which includes vehicle repairs, rental vehicle and investigative costs.
The Special Investigation Unit within State Farm Insurance Company initiated this investigation, which was later referred to the Fraud Division for further investigation. The Fraud Division served a search warrant on All Pro Mechanicx in San Francisco in Oct. 2001. The San Francisco District Attorney’s Office, Insurance Fraud Unit is prosecuting the case.
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