Auto insurance fraud, forgery ring unravels in California

If you think you have a lousy boss, think again.

Luis Manuel Burgos of Fresno, Calif., recently self-surrendered to authorities after being charged with multiple felony counts of insurance fraud and forgery tied to his involvement with an organized fraud ring. He allegedly filed fake insurance claims on a former employee’s policy and intercepted undeserved insurance checks, according to the California Department of Insurance (DOI). Two other individuals also were charged for their role in the scheme.

Burgos, who is the owner of B&R Private Security, arranged a casual deal with an ex-employee that involved a sub-lease for a 2016 Lexus vehicle. Burgos then filed several fraudulent claims for the Lexus and his personal car on the former employee’s insurance policy without their knowledge, said the DOI.

“This type of organized fraud increases auto insurance rates for all California drivers,” said Insurance Commissioner Ricardo Lara in a statement. “Insurers pass the cost of fraudulent claims onto other policyholders. This is not a victimless crime.”

Former B&R Private Security employee Darlina Gutierrez Diaz also was charged for filing an injury claim after being a passenger in a collision and forging medical documents to receive additional paid time off of work benefits. Burgos allegedly aided Diaz in producing the false documentation.

Another former employee, Steven Anthony Rogers, faces several criminal violations, including intercepting insurance checks by impersonating the policyholder and forging signatures.

The alleged criminals face arraignment in October.

Related: 

• Playing dead: Cashing in on insurance fraud
• ‘Runner’ behind auto insurance fraud scheme pleads guilty
• Two Californians arrested in $20 million insurance fraud, kickback scheme