SAN JOSE, Calif.--(Business Wire)--
Farmers Insurance today announced that in a plea agreement with
the San Jose District Attorney's Office in a criminal prosecution on
17 counts of insurance fraud, Gia Van Tran, owner of Tommy's Auto
Body, San Jose, was sentenced to three years prison time for violation
of Penal Code section 550(a)(1) (false statements in support of claim
for insurance benefits).
Tran pleaded to nine (9) additional counts of P.C. 550(a)(1)
violations, each carrying a maximum term of three years, which are to
run concurrently with the three year sentence imposed.
Farmers Insurance Exchange and Mid Century Insurance Company sued
both Tran and his body shop, along with suspected co-owner Sam Phan,
in Santa Clara Superior Court, alleging violations of Insurance Code
section 1871.7 and Penal Code section 550(a)(1). "We are satisfied
that justice prevailed in favor of Farmers, and that Farmers'
nationwide commitment to fighting fraud on all fronts has been
vindicated in both the civil and criminal courts," said Doug
Ashbridge, Farmers Director of Special Investigations. As recorded in
the plea agreement, Tran settled Farmers' civil lawsuit on behalf of
himself and the body shop, by paying $180,000. Co-defendant Sam Phan
settled for $20,000.
Farmers Special Investigations Unit (SIU), after noticing unusual
billing patterns, initiated an investigation and developed evidence
against the defendants.
Farmers' SIU, which includes body shop experts, inspected invoices
of work done on 12 vehicles and documented fraud in each invoice. "The
expert inspections revealed substantial discrepancies between the
invoices and the work actually performed," explained Ashbridge. "The
invoices reflected billing for repairs that were not done, billing for
replacements where the parts were not replaced, billing for part
replacements that were only repaired and other similar billing issues.
Farmers sought over $320,000 in statutory damages for the intentional
actions of the defendants."
Mr. Ashbridge added: "This sentencing, along with our successful
civil actions, sends a clear message to body shops that they cannot
bill Farmers, accept money for the parts and services, fail to install
the parts or render the services, and then simply pocket the money.
This type of fraudulent activity will be exposed and punished. Farmers
will persevere in its endeavors to stem the tide of insurance fraud
which costs auto insurance customers billions of dollars a year
nationwide."
Farmers is represented by Dennis B. Kass and Evelina M. Serafini,
Manning & Marder, Kass, Ellrod, Ramirez, LLP.
Farmers Group, Inc. is a wholly owned subsidiary of Zurich
Financial Services, an insurance-based financial services provider
with a global network of subsidiaries and offices in North America and
Europe as well as in Asia Pacific, Latin America and other markets.
Farmers(R) is the nation's third-largest Personal Lines Property &
Casualty insurance group. Property and casualty products are
underwritten and issued by the Farmers Exchanges and their
subsidiaries, which Farmers Group, Inc. manages but does not own.
Headquartered in Los Angeles, Farmers insurers provide Homeowners,
Auto, Business, Life insurance and financial services to more than 10
million households. For more information about Farmers, visit our Web
site at www.farmers.com.
Farmers Insurance
Jerry Davies, 213-400-4459
jerry.davies@farmersinsurance.com
Copyright Business Wire 2008
