FARMERS SAYS NORTHERN CALIF. AUTO GLASS BUSINESS INVOLVED IN SCAM

Farmers Insurance Exchange, Los Angeles, has begun serving civil summons and complaints on Redding, Calif.-based auto glass company Onsight Auto Glass and its owner. Farmers is accusing the company of taking part in a scheme designed to defraud the insurer and its policyholders.

The civil complaint seeks not only damages for the fraud allegedly committed, but seeks injunctive relief, where the courts are asked to order a halt to the deceptive practices.

Outlining a highly unusual and aggressive billing scam, the lawsuit details how the perpetrator allegedly deliberately over-billed Farmers for services on 455 occasions.

As alleged in the civil complaint, the defendant created a sham office in a remote area so it could manipulate its billing. The complaint alleges that the only things located where the shop was claimed to exist were abandoned mines and a shack. There was no electricity, no running water and no auto glass business.

Under national guidelines, automobile glass claims are paid at a premium if the shop is located in less densely populated areas. As alleged in the complaint, the defendant created documentation that the shop was located in a remote area so it could charge Farmers significantly more.

Farmers said it developed evidence indicating that 81 percent of the money paid to Onsight Auto Glass involved fraud. Farmers’ Special Investigations Unit confirmed its suspicions through witnesses and documented the suspected fraud.

Following its investigation, Farmers determined no glass work was done from the alleged shop location but by pretending to have a shop at this address, the defendant reportedly was able to falsely charge more for its work.