Sacramento, Calif. resident Michael Henderson is the most recent example of someone who attempted to take advantage of his auto insurer by committing fraud.

The story is familiar. Back in February 2008, Henderson reported to police that his 2003 GMC Yukon had been stolen from his driveway. The car, which was valued at $22,000, was later recovered 10 days later by the Sacramento Police. It was completely burned out and destroyed; a total loss.

When his insurer became suspicious, however, the California Department of Insurance conducted an investigation, which ultimately led to a confession by Henderson in which he admitted to staging the theft and burning his own vehicle. He submitted himself to police earlier this month, and his bail was set at $25,000. If convicted, Henderson could face up to five years in prison.

"Department of Insurance investigators work collaboratively with police and district attorneys to crack down on anyone who attempts to commit insurance fraud," said California Insurance Commissioner Steve Poizner.

Interested in more fraud news and in-depth articles? Head over to Claims' fraud channel for more information.

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