California Department of Insurance (CDI) fraud investigators arrested five Sacramento-area residents Thursday, May 16, for allegedly taking part in a million dollar mobile phone insurance scheme. Three of the five suspects worked for a major mobile phone carrier and accessed confidential customer information. According to investigators, the employees targeted customers with high value cell phones and insurance policies, using the stolen information to file more than 1,900 phony insurance claims for damaged or stolen phones. The suspects had replacement phones shipped to their homes and to the homes of co-conspirators.
"People who commit insurance fraud, hurt all of us," said Alan Barcelona, president of the California Statewide Law Enforcement Association (CSLEA). "Our CSLEA members who investigate these types of crimes should be applauded for putting a stop to something that ends up costing us all in higher prices for products and higher insurance premiums."
Each of the five arrested are charged with 31 felony counts, including conspiracy, grand theft and presenting a fraudulent insurance claim.