Calif. man charged in Carr Fire insurance fraud plan
A Redding, Calif., resident was charged with nine counts of insurance fraud in his attempt to claim a larger payout following the 2018 fire.
In 2018, the Carr Fire prompted the evacuation of thousands as it swept across communities in Northern California. Once it was 100% contained in late August, the fire burned 229,651 acres and destroyed more than 1,600 structures, resulting in $1.5 billion in insured losses.
During the Carr Fire, Stephen Cortopassi of Redding, Calif., evacuated his home before the fire destroyed his residence. In addition to his house, Cortopassi had four cars, with an estimated value of $43,060, and a detached garage on the property.
The day after he was notified of his property damage, Cortopassi spoke with his insurance broker and purchased a new policy on one of the vehicles and added comprehensive coverage to the three other vehicles, all of which had already been destroyed. These new policies, valued at $43,060, took effect on July 29, 2018, two days after the fire destroyed his property.
According to the California Department of Insurance, Cortopassi waited three weeks to file a claim on the new automobile policies. In the claims, he fraudulently stated that his vehicles were destroyed on August 9, 2018, two weeks after the actual loss. He received over $1 million for his legitimately insured property. However, before paying out for the newly-added additional coverage, his insurer referred the claim to the DOI for suspected fraud.
“This alleged crime comes at the expense of wildfire survivors throughout the state,” said Insurance Commissioner Ricardo Lara in a statement. “Many wildfire survivors lost everything they owned, and it is crucial the Department of Insurance works with insurers to get them on the road to recovery as quickly as possible. My department has helped to obtain millions of dollars in legitimate claims for wildfire survivors, and there is no place for those who want to cheat the system for a bigger payout than they are entitled to.”
On January 17, 2020, Cortopassi self-surrendered to the Shasta County Jail after being charged with nine felony counts of insurance fraud and will appear in court on March 2, 2020.
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