Car Insurance Fraud

Frank Barone, Ray’s dad on Everybody Loves Raymond (played by the late, great Peter Boyle) said of car insurance fraud - “Everybody does it.” He found out that his own sons were not “everybody” when they refused to go along with his fraudulent scheme. But the elder Barone’s view on insurance fraud is disturbingly common, as many people who would never engage in other forms of theft think that it’s okay to “cheat” a little on their insurance claims. The fact is that when you commit insurance fraud, you’re stealing from everyone who buys insurance because their premiums go up to cover the cost of the fraud. Another fact is that across the country, local law enforcement is cracking down on would-be Frank Barones. Just ask James Hagopian.

The Alleged Plot

Mr. Hagopian is the proprietor of Jim’s Auto World in Salem, NH, and the former driver of a 1994 BMW. He was recently arrested and charged with car insurance fraud, among several other things. Mr. Hagopian is innocent until proven guilty, but here is the alleged plot:

After learning that it would cost between $2,500 and $3,000 to fix his BMW’s transmission, Mr. Hagopian allegedly decided to fake the theft of his car, thereby recovering its replacement value through his comprehensive coverage, which covers theft. According to police, Hagopian then hired a tow-truck driver to “get rid” of his car - it still has not been found - and he then filed a police report and insurance claim.

Hagopian received $1,037 for a rental vehicle and $6,785 for a total loss on his BMW, but two weeks later, one of Hagopian’s employees told the police that Hagopian had arranged for the car to “disappear.” It seems as though Mr. Hagopian was no Michael Scott (world’s greatest boss on The Office) - he has also been charged with beating one of his employees who had to receive medical attention due to his injuries.

Not a Big Deal?

In the past, many fraudsters were let off with a slap on the wrist, but times have changed, and Mr. Hagopian’s case is a little more serious. In addition to the insurance fraud charge, he has also been charged with filing a false police report and larceny over $250. A separate but related incident has resulted in charges of assault-and-battery and intimidation of a witness. If found guilty, Mr. Hagopian is unlikely to get off with a slap on the wrist or even a stiff fine. Instead, he’s likely to face serous jail time.

As stated above, this is part of nationwide crackdown on car insurance fraud. In fact, Mr. Hagopian is the 225th person to be charged with the crime in Lawrence District Court in the past three years! Many industry analysts credit fraudster crackdowns as one of the leading reasons that car insurance rates have gone down, or at least not risen as sharply, in recent years.

The moral of the story is that when it comes to car insurance fraud, it is best to do like Nancy Reagan and just say no. If guilty, James Hagopian will lose almost everything - all for a measly three grand? Your freedom and integrity are worth far more than a few thousand dollars, don’t you think?