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Wednesday, 08 May 2019 21:30

GEICO Hits Nuclear Button Over Insurance Fraud in Tucson, AZ

Written by Lyle Adriano, Insurance Business America

GEICO is redoubling its zero-tolerance policy towards fraud, by filing its second federal lawsuit in Arizona against an auto repair shop that has been suspected of filing fraudulent repair bills.

 The insurer alleges that the Advantage Auto Glass repair shop submitted invoices with forged signatures of GEICO’s customers, for repairs that were never performed. In particular, GEICO alleges that it was billed for repairs associated with Advanced Driver Assistance Systems--systems that were not available on many of the cars being “repaired.”

 

In addition to billing for services that were not provided, GEICO’s suit alleges that the defendants submitted falsified documents from Arizona automobile dealerships. These documents were for reimbursement of glass parts that were not purchased.

 

According to an official statement from GEICO, the insurer is looking to recover damages under civil Racketeer Influenced and Corrupt Organizations (RICO) Act statutes, as well as for unjust enrichment and fraud.

 

GEICO also revealed in a statement that it intends to file more lawsuits against fraudsters in the future “to continue making every effort to protect its customers and the public from fraudulent glass repair operators.”

 

“GEICO will continue to pursue those who victimize our customers and attempt to profit from fraudulent schemes,” said GEICO assistant vice-president of claims in Tucson, AZ, Shane Wheeler.

 

“Insurance fraud costs all insurance consumers in Arizona by causing premiums to increase, and we will continue to pursue them with zero tolerance,” Wheeler said.

 

We thank Insurance Business America for reprint permission.

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