Copyright held by The John Cooke Fraud Report. Reprint rights are granted with attribution to The John Cooke Fraud Report with a link to this website.
Three Providence-area (RI) men pleaded guilty in US District Court to defrauding 12 insurance companies of more than $128,000.
Edward Voccola, the owner of Federal Auto Body and Fountain Auto Body, pleaded guilty to violating the Racketeer Influenced and Corrupt Organizations Act (RICO). Roger Cavaca, the body shop manager, and Edward’s younger brother, Robert Voccola, each pleaded guilty to four counts of mail fraud.
According to the investigation, the men kept five damaged cars at one of the body shops. To run their scam, they would use fake identification to purchase short-term liability insurance on a fictitious older car. Then, using the damaged cars they had on hand, they would claim that the insured car had hit an unattended parked car. Both cars were then reported towed to one of the three body shops.
The men were able to purchase the fictitious policies without presenting the car for inspection because they didn’t buy collision insurance on the older cars.
The conspirators used the scam 22 times between April 1991 and February 1993. Insurance companies defrauded in the scheme were Allstate, Amica Mutual, Arbella, CNA, Commercial Union, Continental, Metropolitan, National Grange Mutual, Progressive, Safety, Sentry and Trust.
The three men were released on bond after entering guilty pleas. All three are eligible for jail terms and have been ordered to pay restitution to the insurance companies. Edward also faces the loss of his businesses under RICO, with the issue to be decided in a nonjury trial.
© Copyright 1995 Alikim Media