Undercover Contra Costa Sting: 4 Accused Of Auto Insurance Fraud

CONCORD, CA — Employees of two Concord businesses are facing charges related to insurance fraud after the Contra Costa County District Attorney's Office teamed up with the California Department of Insurance to conduct an undercover operation. On Friday, investigators arrested the last two of four employees at four different auto repair shops caught in the sting operation, a spokesman for the Contra Costa County District Attorney's Office said in a news release.

The DA's Office identified the four people charged in the sting operation as: 30-year-old Kyle Coburn, an employee of AW Collision in Concord; 49-year-old Marco Hernandez, an employee of 101 Auto Body in Richmond; 26-year-old Estephanie Gonzalez-Marquez, an employee of Tepa Autobody in Pittsburg; and 33-year-old Vu Hoang, an employee of Kee's Auto Body in Concord.

During the sting, an undercover officer visited several auto-body repair shops in Contra Costa County. At each shop, the officer posed as a customer who said they wanted to claim and repair preexisting damage on a new insurance policy initiated after the damage occurred. The officer requested a repair estimate from each shop to assist with the false insurance claim, according to Scott Alonso, spokesman for the Contra Costa County District Attorney's Office.

According to the DA's Office, auto repair shops provide estimates to customers for insurance claims knowing that the customer’s ultimate decision on whether to proceed with the repair, and pay for it, may depend on the insurance company approving and paying out for the claim.

"This can create an incentive for the estimator to overlook or even encourage a customer known to be committing a fraud," Alonso said. "Accepting business with knowledge or reckless disregard for the fact that a customer intends to commit insurance fraud is a felony punishable by up to three years in prison and an additional fine of up to $50,000."

The DA's Office reminded consumers to be wary of listening to anyone who suggests lying to an insurance company related to an insurance claim.

"Providing false or misleading information in support of an insurance claim is a felony punishable by up to five years state prison and an additional fine of up to $50,000," Alonso said.

Anyone who suspects auto insurance fraud is being committed can report it to the DA's Office by sending an email to DA-ReportFraud@contracostada.org, Alonso said.