10 Arrested In Insurance Fraud Sting

CHELSEA, Mass. -- Officials in Chelsea are cracking down on car insurance fraud, including staged accidents and false police reports.

NewsCenter 5's Jim Boyd reported that Chelsea was targeted because of the high number of bodily injury claims made per accident.

"We also had a very high auto theft rate -- it was six-times the state average," said Anthony DiPaolo, of the Insurance Fraud Bureau.

As a result, the Insurance Fraud Bureau set up a task force in Chelsea and fanned out onto the streets conducting an investigation. That resulted in the arrest of 10 people.

"(The 10 people were charged with) reporting a stolen care when it wasn't stolen," said Chelsea Police Chief Frank Garvin.

Investigators explained how they were able to determine which cars were not stolen in the manner that the owners claimed.

"There was an ignition that had a screwdriver in it that was broken off. That vehicle needed to be moved with the key. It could not be moved with a screwdriver stuck in the ignition," said DiPaolo.

DiPaolo said there are task forces operating in seven other communities. Thefts and false insurance claims have been reduced dramatically in those communities.

"As of the end of 2005, there have been, in the eight areas where we work, there has been a drop of almost $200 million in the amount of automobile insurance claims that have come out in these particular areas," said DiPaolo.

DiPaolo said that helped bring insurance rates down by 8.2 percent for Massachusetts drivers in 2006. Garvin hopes the stepped-up enforcement has another result.

"People who are inclined to so something like this will think twice when they hear that these people have been arrested," Garvin said.

The 10 people who were arrested were arraigned and released on personal recognizance. Garvin said none of the people have criminal records, but they now face 2 ½ years in prison if convicted.