Bodyshop workers arrested on suspicion of fraud

Nov. 20--Ten employees from four El Paso area body shops have been arrested on suspicion of insurance fraud after allegedly intentionally damaging vehicles to make false insurance claims, law enforcement officials said Friday.

El Paso Police Chief Greg Allen said the National Insurance Crime Bureau informed police about the alleged insurance fraud that lead to a 22 month investigation and the arrest of the employees.

"With the efforts of all the agencies involved here along with the District Attorney's office, we are bringing this particular investigation to a successful conclusion," Allen said during a Friday morning news conference at police headquarters, 911 N Raynor St.

The El Paso Police Department's Auto Theft Task Force, along with Federal Bureau of Investigation, Texas Department of Public Safety, Homeland Security Investigations and others, began Operation Paint Job, looking into body shops suspected of committing insurance fraud.

The task force discovered employees at some body shops were intentionally damaging vehicles to file insurance claims. Damages varied from vandalism to staged accidents, officials said.

The shops are still open at this time, officials said. About five insurance companies brought the alleged fraudulent cases to the attention of law enforcement, said Jaime Ramos, captain with Texas DPS, criminal investigations division.

El Paso police spokesman Sgt. Robert Gomez said in a news conference at police headquarters in Central El Paso that there were 217 suspected fraudulent cases in 2014. The cost of estimated fraud claims range from approximately $800,000 to $1.3 million. The claims were brought to the attention of law enforcement officials January of last year. Gomez said the no citizens were charged or involved in this specific operation.

"It's a very serious offence and it costs policy holders and (the) insurance industry a great deal of money," Gomez said.

Because insurance fraud is time consuming and difficult to investigate, Gomez said El Paso police formed a task force involving multiple law enforcement agencies. The fraudulent cases were discovered after an undercover operation of eight El Paso body shops. Out of the eight body shops that were investigated, four of them were found to be "conducting illegal activity," Gomez said in the news conference.

The 10 employees who were arrested in a warrant roundup on Thursday face charges ranging from insurance fraud to engaging in organized criminal activity.

Police officials said some of the scenarios involved employees increasing the damages of vehicles to increase the value for the insurance claim as well as staging accidents.

"Accidents that didn't occur were being claimed to insurance companies," Gomez said.

Regional Commander for the Texas DPS Carey Matthews said the case has been handed over to the El Paso District Attorney's office and that DPS will provide additional assistance as needed.

District Attorney Jaime Esparza said he was pleased with the results of the warrant roundup.

"To me, this is a sign of a successful task force, a successful investigation and now they'll hand it to us and we'll take it to court," Esparza said.

The 22-month investigation resulted in warrants executed Thursday resulting in several arrests Thursday, officials said.

The employees worked at Gordo's Body Shop, Rigo's Body Shop, Big V's Body Shop and C&M body Shop.

Arrested were:

Gordo's Body Shop:

* Matthew Nathaniel Olivas, 28: Insurance fraud of $1,500 to $20,000, with a bond of $2,500

Rigo's Body Shop

* Juan Francisco Apodaca, 33: Two counts engaging in organized criminal activity / insurance fraud, with bonds totaling $40,000

* Rigoberto Martinez Leanos, 45: Two counts of engaging in organized criminal activity / insurance fraud, with bonds totaling $45,000

* Cid Romero, 43: Insurance fraud of $1,500 to $20,000, with a bond of $7,500

* Christian Rodriguez, 23: Insurance fraud of $1,500 to $20,000, with a bond of $7,500

* Daniel Martinez Salas, 23: Insurance fraud of $1,500 to $20,000, with a bond of $7,500

* Julio Mota, 24: Insurance fraud of $1,500 to $20,000, with a bond of $7,500

Big V's Body Shop

* Christopher Adam Enriquez, 28: Insurance fraud of $1,500 to $20,000, with a bond of $1,500

C&M Body Shop

* Miguel Angel Garcia, 50: Insurance fraud of $1,500 to $20,000, with a bond of $2,500

* Michael Christopher Crowe, 27: Insurance fraud, with a bond of $10,000

* The task force is coordinating with the district attorney's office for prosecution, officials said Friday.

Luis Carlos Lopez may be reached at 546-6381; [email protected]; @lclopez4 on Twitter.

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