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SALT LAKE CITY — Nearly 80 falsified car accident reports were the focus of a two-year investigation into two insurance fraud rings, officials said Friday.
In total, 19 people were charged in connection to the accident reports in Summit and Utah Counties after the investigation by the State of Utah Insurance Fraud Division. Insurance companies paid out more than $200,000 for fictitious claims, investigators said.
The insurance fraud ring involving the most people was located in Summit County, where investigators said claims were filed for 58 accidents that never occurred. On Tuesday and Wednesday, 12 of the 14 people charged in connection to the ring were arrested or contacted by law enforcement.
"The apparent ring leader, Diego Ibarra, enlisted 13 co-defendants in submitting false auto accident claims alleging they had hit a deer or collided with other vehicles or objects while avoiding deer or were involved in parking lot collisions," a statement from the Insurance Fraud Division reads.
The repairs were never made and the damages were repeatedly claimed in a number of different fraudulent insurance claims.
–Utah Insurance Fraud Division
Investigators said none of the accidents were reported to police. The people involved with the insurance fraud "took turns transferring vehicle ownership" of 25 cars and used at least 15 different insurance companies, they said.
All of the vehicles were either intentionally damaged by the people filing the insurance claims or had damage from previous accidents, according to investigators. They said the cars were then used for multiple claims and rarely repaired.
More than $100,000 of payments were made to those involved with the Summit County insurance fraud ring, investigators said.
People involved with the second ring in Utah County also filed insurance claims alleging their vehicles had been damaged in accidents involving deer or parking lots, according to investigators. Six people have been arrested so far, but the investigation is still ongoing.
Summit County ring
• 58 false claims
• 25 vehicles used
• More than $100,000 in insurance payments
Utah County
• 21 false claims
• 19 vehicles used
• More than $110,000 in insurance payments
Investigators said the Utah County ring was controlled by J. C. Sueldo, who owns an auto body shop called J.C. Auto Body in Provo. Nineteen vehicles were used in 21 falsified insurance claims, they said.
"Sueldo purchased vehicles from acquaintances that were moving out of the country," the statement reads. "Sueldo enlisted the other co-defendants in renewing or maintaining insurance policies under the previous owners’ names, in effect stealing the identity of 11 victims, and had them file the false accident claims."
Sueldo used his auto body shop as part of the scheme, investigators said. Eight insurance companies paid out more than $110,000 in loss payments to the Utah County ring.
"As part of this process Sueldo maintained the appearance that his body shop was fixing the involved vehicles by creating false auto body repair invoices," the statement reads. "The repairs were never made and the damages were repeatedly claimed in a number of different fraudulent insurance claims. Sueldo also created false invoices for rental cars he claimed to provide the co-defendants while their vehicles were being repaired."
Before the charges were filed, investigators said Sueldo left the country to travel to Bolivia. He has not returned, officials said.
