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SJ Officials: 12 Accused Of Cell Phone Insurance Scam


SAN JOSE, Calif. - Nearly a dozen people were arrested with regard to fraud charges, the assurance of San Jose said Commissioner Steve Poizner Thursday in a press release.

Eleven people were arrested in recent weeks, a large number of crimes, including insurance fraud, identity theft, possession of stolen property and the submission of a false declaration of tax. Mobile-distributors, customers and employees were arrested for their alleged participation in an insurance scam $ 2 million, said Poizner.

“As an artist, Scam-Cheat System, everyone suffers,” said Poizner. “Companies, insurance cheat money is not an extra dollar to play fair and to undermine the integrity of a free market. ”

The California Department of Insurance Fraud Division, with support from the California Highway Patrol and Santa Clara County District Attorney’s Office has launched investigations in several Bay Area cell phone in the year 2005 recorded an insurance administrator for Asurion Corp., he said the right to suspect fraud, says Poizner.

Asurion Wireless Corp. manages insurance protection plans coverage of the loss, theft or damage to mobile phones. The administrator proposes a phone replacement, if a claim is submitted and approved, “said Poizner.

Merchants fraud occurs when a customer buys a policy on a mobile phone to cover against the risk of loss, theft or damage, “said Poizner. After the sale of a phone to a customer, an employee of the store, the staff or the owner of the file is a debt due to the sickness funds for a mobile phone lost or stolen. After insurance sends a phone replacement, the trader sells or gives free mobile phone replacement with a new client, “said Poizner.

This system is often repeated on the new mobile phone accounts, the original customer without knowing it, an assurance that the event was on his own. CDI survey covered nearly $ 2 million replacement phones, the delivery of Asurion as a consequence of this scheme of fraud. This study goes further and suggests that more arrests Commission, Poizner said.

The Santa Clara County District Attorney’s Office this case persecution. If someone has additional information regarding this study, or feels he or she has been a victim of insurance fraud, in conjunction with a mobile phone to be registered, he or she should Department of Insurance , call 1-800-927-HELP.



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