Insurance Fraudsters Sentenced in Idaho and California


Insurance providers and local State officials are advised to be on alert as two separate auto insurance felons have been sentenced to incarceration and probation in two separate states, Idaho and California.  Experts say that reports on car insurance crimes early in the year greatly damage credibility of the insurance system in the US.

Insurance Fraudsters Sentenced in Idaho and CaliforniaIn Idaho, reports from the Attorney General’s office show that Michael M. Davisson, accused of fraudulently informing city police and his insurance provider that his vehicle has been stolen back in 2007, finally received a verdict and is now placed on a five year probation last Tuesday, January 5. Davisson, who lost his car last August 25, 2009, already came clean when he pleaded guilty to one count of insurance fraud and confessed that it was his intention to mislead his insurance provider by giving them bogus information about what happened to his vehicle. Fourth District Judge Richard Greenwood initially sentenced Davisson to spend seven years of incarceration. However, this prison term was eventually suspended, sentencing Davisson to spend five years on probation. In addition, Davisson must pay financial restitution and serve 60 days in prison.

Davisson apparently informed USAA Insurance and the Meridian Police that his Lexus 2003 model was stolen when he parked it late at night in the city. He even specified the location – 501 S. Main St., near Muggsy’s Bar and Grill. Authorities said that Davisson’s Lexus was later found in an empty lot near Stewart/E. Deer Flat roads. According to detailed reports from the Attorney General’s office Davisson’s insurance provider, USAA Insurance, together with the Idaho Department of Insurance and a team of Investigators found out evidences that the vehicle may have been parked by someone else while Davisson makes his story that the car was stolen.

On the other hand, in California, Noel Perez pleaded guilty to charges of insurance fraud. Perez was accused of setting his car on fire in Angeles National Forest and then filing a fraudulent insurance claim. According to the California Department of Insurance, Perez was sentenced to spend 180 days in prison and three years of probation.

Reports from the California Department of Insurance reveal that the vehicle was found to be extremely burnt, making identification of the vehicle seemingly impossible. California’s Azusa Police Department and CDI Los Angeles Auto Insurance Fraud Task Force teamed up to investigate on the issue and eventually identified Perez as a prime suspect. CDI detectives eventually arrested Perez and charged him with two counts of insurance fraud, one count of arson and one count of unlawful intercourse with a minor.