North Carolina Insurance Commissioner Mike Causey announced the arrest of Antonio Lorenzo Covington, 32, of 114 Woodman Ave., Charlotte, on felony charges of insurance fraud and obtaining property by false pretense. Special agents with the state Department of Insurance’s Criminal Investigations Division accuse Covington, general manager of Tow Godz LLC, of submitting a $4,250 fraudulent […]
California Bureau of Automotive Repair Advisory Group to Weigh Airbag Sourcing Rule and Predatory-Towing Case July 30
Agenda pairs a pending airbag-parts regulation and a windshield calibration-disclosure bill with an enforcement case study built on a bandit-towing scheme. The California Bureau of Automotive Repair will convene its Advisory Group on July 30 for a session that puts several regulatory, legislative and enforcement matters affecting collision repair facilities before the panel, including a […]
California Bureau of Automotive Repair Suspends Los Angeles Collision Repair Center Over Predatory Towing Scheme
BAR received 30 complaints during roughly one year when the business had been licensed. A California administrative law judge has suspended the automotive repair dealer registration of Los Angeles collision repair facility LA Custom Collision LLC, finding that the business ran a predatory towing and storage-fee scheme that defrauded crash victims and their insurers out […]
San Antonio Towing Company to Pay $280,000 Over Illegally Sold Servicemember Vehicles
San Antonio-based Vehicle Management Solutions Inc. will pay $280,000 to resolve U.S. Justice Department allegations that it illegally sold or scrapped about 93 vehicles owned by U.S. servicemembers in violation of the Servicemembers Civil Relief Act (SCRA), the department announced May 28. Under the settlement, the company known as VMS will pay $220,000 in compensation […]
AAA Foundation Survey Finds Most Drivers Don’t Fully Understand Slow Down, Move Over Laws
More than 2,100 people were struck and killed while stranded or working on the roadside between 2019 and 2023, and a new national survey from the AAA Foundation for Traffic Safety finds that significant gaps in driver knowledge of Slow Down, Move Over laws may be contributing to the ongoing toll. The findings carry direct […]
Connecticut Appellate Court Rules GEICO Complaints Against Towing Companies Protected by Litigation Privilege
The Connecticut Appellate Court has affirmed the dismissal of claims brought by four towing and auto repair businesses against Government Employees Insurance Company (GEICO) and two of its employees, ruling that complaints the insurer filed with the state Department of Motor Vehicles concerning nonconsensual towing and storage fees are protected by the litigation privilege. The […]
DOJ Sues California Towing Company for Illegally Auctioning 148 Servicemembers’ Vehicles
The Justice Department filed a lawsuit against S & K Towing, Inc. of San Clemente, Calif., alleging the company violated the Servicemembers Civil Relief Act (SCRA) by illegally auctioning motor vehicles owned by military members without obtaining required court orders. The case is the latest in a string of federal enforcement actions against towing companies […]
Southern California Tow Company Owners Arrested in $5.9 Million Workers’ Compensation Fraud Scheme
Brothers alleged to have underreported payroll by nearly 14 million to lower insurance costs. Brothers Mark Hassan, 46, of Corona Del Mar, and Ahmed Hassan, 35, of Walnut, Calif. were arrested March 11 on multiple felony insurance fraud charges after a California Department of Insurance investigation found the pair allegedly underreported nearly $13.7 million in […]
Florida Announces Arrest of Insurance Agent for Fraudulent Tow Truck Policy Scheme
Florida Chief Financial Officer Blaise Ingoglia announced the arrest of a licensed insurance agent and an unlicensed individual for selling fraudulent commercial insurance policies for tow trucks in Miami-Dade County. Javier Gonzalez Jr., a licensed insurance agent, and Aliba Lamas Alvarez were arrested Feb. 5 by the Department of Financial Services Criminal Investigation Division. Investigators […]
Sedgwick Launches Tow, Storage Fee Negotiation Service for Auto Claims
Sedgwick launched a tow and storage negotiation service designed to reduce costs for insurance carriers handling auto claims. The service uses licensed adjusters to negotiate storage and towing fees with repair facilities. The company said the service reduces charges by an average of 32%. Adjusters access the service through a proprietary technology portal that allows […]
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