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Jan27
Auto Fraud Scheme Foiled By Sting
New York detectives in the Borough of Queens have been operating non-descript garage for about eighteen months, receiving cars which the owners thought would be dismantled for parts so that they could file claims for the vehicles as having been stolen. Instead, they became caught up in a sting which recovered $1.7 million worth of cars, and landed over sixty people in jail.

stolen_car_fraud.jpgAs part of the operation, which started in July 2006, some suspects turned over vehicles to middlemen who would deliver them for a fee to the undercover “chop shop” in Queens, officials said. The middlemen then returned the keys to the owners, who could use them to make stolen-vehicle claims to the police and insurance companies.

As a part of the operation, the undercover detectives paid the middlemen about $1,000 per vehicle, the district attorney’s office said. Of those arrested, 15 are charged with acting as middlemen in the transactions, and 5 are charged with possessing stolen cars or possessing or removing vehicle identification numbers for vehicles, according to the district attorney’s office.

That is one way to make people pay for Bad Business.

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