FBI Arrests Man For Alleged Car Insurance Scam

The FBI arrested a man in Melrose last Friday on charges that he and a co-defendant used a scheme to sell vehicles to a businessman from Mexico—actually an undercover law enforcement officer—and then report the vehicles stolen in order to collect insurance payouts.

Kevin Charbonier was arrested by the FBI on Friday, Sept. 3 at 5:24 a.m. at a home on Burrell Street in Melrose. Brandy Donini-Melanson, U.S. Attorney's Office spokeswoman, said she did not know if Charbonier was currently living at that address which, according to the city assessor's database, is owned by a couple who share Charbonier's last name.

Charbonier's attorney Paul Garrity could not be reached immediately for comment.

According to the indictment filed in U.S. District Court, the alleged crimes primarily took place in Taunton and Bridgewater, beginning in August 2005 and continuing until at least November 2006.

Charbonier and Richard Elliott, also named in the indictment, allegedly took part in a scheme to defraud insurance companies by selling cars, trucks and motorcycles to the undercover officer, posing as a businessman who would have the vehicles transported to and sold in Mexico, according to the indictment. The two men would then report the vehicles as stolen to the appropriate insurance company in order to receive insurance payouts.

According to the indictment, through the alleged scheme Charbonier received an insurance payout of $11,379 for a 1998 Hardley Davidson motorcycle, and Elliott received an insurance payout of $29,060 for a 2004 Chevrolet Silverado truck.

Setting up the sale between the two men and the undercover officer were Joseph Noe and Brian Delavega, members of the Taunton chapter of the Outlaws Motorcycle Club. Both Noe and Delavega were arrested in 2007 after a two-year investigation; a Boston Globe article from 2008 states that members of the motorcycle club had allegedly ran an insurance fraud scheme similar to the one resulting in the charges against Charbonier and Elliott.

U.S. Attorney's Office spokeswoman Donini-Melanson said that Charbonier pled not guilty in U.S. District Court last Friday and he was released on bond with conditions.