Antique Porsche Fraud—California

Amount: $250,000

Two California friends were arrested and charged with multiple felony counts of insurance fraud and conspiracy for filing a false insurance claim for the alleged theft of a classic 1955 Porsche 356 Speedster. The Department of Insurance Fraud Division launched an investigation into the circumstances surrounding a claim filed by one of the charged after receiving a suspicious claim referral from Farmers Insurance. The suspicious claim was that the collectable 1955 Porsche was stolen in Nevada while the first fraudster attended an annual rib cook-off. The scheme was elaborately planned, with an extensive paper trail showing that the first fraudster purchased a 1955 Porsche. The second fraudster then provided a different Porsche so the first could get an appraisal on the value of the collectable car. The investigation by the Department of Insurance Fraud revealed that the VIN number was altered to make the vehicle appear to be a different 1955 Porsche. Using the Porsche with the altered VIN number, the car was appraised at a value of $250,000. The first fraudster then used that appraisal to procure an insurance policy for the car. Soon thereafter the first fraudster reported the Porsche stolen to the police and his insurance company. Later investigations uncovered that the fraudsters had known each other for years, and that the vehicle with the reported VIN did exist and was located in a nearby county. The second fraudster was convicted and sentenced to 150 days in jail and five years of probation, along with community service, restitution, and a mandatory ethics course.