San Diego (CNS)-The California Department of Insurance announced on Friday that an investigation involving auto insurance fraud gangs in the San Diego area resulted in more than a dozen insurance companies losing more than $800,000, and 32 defendants have been charged.

According to the prosecutor, the gang members purchased second-hand and/or damaged vehicles at a substantially reduced cost, and then filed exaggerated claims or staged thefts and crashes to profit from insurance payments.

According to the Department of Insurance, investigators determined that over a period of four years, 45 potentially fraudulent auto insurance claims involving 56 vehicles were filed, and some of the car’s odometers were “rolled back” to increase the value of the car.

After the consumer called the San Diego County District Attorney’s Office, an investigation into the fraud was launched-known as “Dealer Choice Action.”

According to the Ministry of Insurance, the dozen insurance companies affected by the plan are Nationwide, Stonewood, USAA, California Casualty, Allstate, State Farm, Liberty Mutual, Esurance, GEICO, Kemper, Wawanesa and AAA.

So far, 4 people have been sentenced for the plan, 7 people are still at large, and 17 people have recently been summoned. Almost all 32 defendants are from the San Diego area.

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