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Tuesday, 14 January 2020 17:18

Arizona Geico Fraud Lawsuit Reaches Settlement Agreement

Written by Emmariah Holcomb, glassBYTEs.com

Index

The ongoing legal battle between Geico and six parties has ended in an Arizona courtroom.

According to the joint settlement motion, both parties came together outside of the courtroom and have reached an agreement.

 

“… based on the communications and discussions between and among counsel for the parties, the parties have agreed to a settlement on all material terms in this case. The parties are currently finalizing the terms of the settlement, and anticipate having final settlement documents within 30 days,” a portion of the joint settlement motion reads.

 

The lawsuit alleged the defendants: 808 Auto Glass, Jesse Pacheco, the sole member and operator of 808 Auto Glass, A&E Auto Glass, an Arizona limited liability company, Eric and Anna Solheim, who were the sole members and operators of A&E Auto Glass, Lightning Capital, a limited liability company that claimed to be a third party business, and Nicholas Minard, a managing member of Lightning Capital, participated in “fraudulent acts” which included billing auto insurers for windshield replacements that “never took place.”

 

Case Background

 

In 2019, Geico originally sought termination of what it alleged was an ongoing fraudulent scheme. The company aimed to recover more than $100,000 that it claimed the defendants improperly obtained from the insurance company through hundreds of non-reimbursable insurance claims. Geico aimed to recover financial damages under the civil racketeer influenced and corrupt organizations act (RICO) statutes.

 

According to Geico’s complaint, it should be reimbursed for windshield replacement services and the installation and use of windshield parts – including mouldings, clips, and fasteners – attendant to the windshield replacements.

 

Geico previously stated the work the defendants claimed to have done regarding auto glass claims were “never performed, submitted through 808 Auto Glass, which never provided the services and parts, as well as never obtained assignments of insurance benefits from the insureds.”

 

“A&E Auto Glass was used by E. Solheim and A. Solheim to secretly provide the auto glass services and parts to Geico’s insureds, and conspired with the other defendants. Lightning Capital was organized in Arizona on or about March 8, 2010, had Minard as its managing member, and was used by the defendants to facilitate the use of 808 Auto Glass as a vehicle to submit fraudulent billing,” a portion of the complaint reads.


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