Around the PIA Western Alliance States – Week of February 24, 2025

California — Vehicle Hostage Scam: The California Department of Insurance issued a PSA with a warning for California drivers about an increase in scams involving tow truck companies targeting car accident victims where vehicles are being held hostage for cash. The scam has become prevalent in Southern California and the Department’s Inland Empire Automobile Insurance Fraud Task Force, has investigated multiple cases including one that has resulted in the arraignment and charges against 16 Southern California residents.

This task force investigation found the auto fraud ring allegedly conspired together to create fraudulent insurance claims to illegally collect over $216,932. The investigation discovered the large-scale organized auto insurance fraud ring was engaged in multiple types of schemes including holding vehicles hostage and collusive collisions. This same ring was previously charged in a similar scheme stemming from vehicles stolen under false pretenses and brought to California Collision in San Bernardino County.

One of the scams in this case involves a tow truck showing up immediately after a collision occurs and offering to help the driver by towing their vehicle to a body shop. Then the body shop forces the driver to pay a large amount of money typically not covered by your insurance in order to get your vehicle back.

“This type of scam is preying on drivers at their most vulnerable moments—immediately after an accident—when they should be focused on their safety and next steps, not fighting to get their vehicle back,” said Insurance Commissioner Ricardo Lara. “Our department is committed to protecting Californians from fraud, and this PSA is an important step in ensuring drivers know the warning signs and how to protect themselves. If you suspect you’ve been targeted, report it immediately. Together, we can put an end to these predatory practices and hold bad actors accountable.”

There are a few red flags drivers should be aware of to make sure they are not a victim of this type of scam:

Tow truck shows up within minutes of accident, you may not even have had time to call anyone yet.

Tow truck driver tells you which body shop your car is going to instead of working with you to identify where you want your vehicle to go.

Tow truck driver tells you someone will contact you by phone or asks you to sign documents.

Tow truck driver requests a rideshare for you.

The Department urges drivers if they believe they may be in a situation like this to verify the tow truck with your insurance company or wait for CHP to verify the tow truck was dispatched by CHP. Also, do not sign any documents until you have talked to their insurance company. For more information on how to protect yourself or to report suspected fraud, contact the California Department of Insurance at 800-927-4357 or online at insurance.ca.gov.

The Inland Empire Automobile Insurance Task Force began this investigation in November 2022 after they found out a California Highway Patrol non-sworn employee, Rosa Isela Santistevan, 56, of Irvine, was unlawfully selling traffic collision report face pages, which contained personal information of people who had been involved in collisions throughout Southern California.

The investigating task force includes the California Department of Insurance, California Highway Patrol, San Bernardino County District Attorney’s Office, and the Riverside County District Attorney’s Office. The State of California Franchise Tax Board also assisted with the investigation.

After the task force served numerous search warrants they seized over 3,500 CHP traffic collision report face pages from the residence of Esmeralda Parga, 27, of Pomona, who the task force determined was connected to Santistevan through the organized ring’s ringleader, Andre Angelo Reyes, 37, of Corona. The conspiracy began after Reyes befriended Santistevan and other CHP employees by donating to various CHP events and parties. Santistevan printed and unlawfully sold thousands of traffic collision face pages to Reyes who would then provide the reports to E. Parga. E. Parga would then contact the parties involved in the collision, pretending to be from their insurance company and coordinate having their vehicle towed to a repair center that they misrepresented as approved by the insurance company.

Unbeknownst to the victims, E. Parga did not represent the insurance company and was stealing the victims’ vehicles. Reyes and E. Parga would then dispatch tow trucks, whose drivers cooperated in the scheme and would pick up the vehicles in Riverside County and tow them to Certified Auto in Buena Park, owned by Anthony Gomez, 36, of Jurupa Valley. Once the vehicles were at Certified Auto, Certified Auto would hold the vehicle hostage and demand cash payment from the insurance companies to have the vehicles released.

During the numerous search warrants, additional evidence was obtained showing the alleged ring was engaged in other types of insurance fraud schemes, including collusive collisions.

The Riverside County District Attorney’s Office has also charged Reyes and Diana Villa Pineda, 34, of Corona with tax evasion of $136,408.

The Riverside County District Attorney’s Office is prosecuting this case.

Defendants include:

Andre Angelo Reyes, 37, of Corona

Diana Pineda Villa, 34, of Corona

Rosa Isela Santistevan, 56, of Irvine

Esmeralda Parga, 27, of Pomona

Anthony Gomez, 36, of Jurupa Valley

Antonio Terrazas Perez Jr., 20, of Los Angeles

Israel Avila Sandoval, 46, of Pomona

Luis Alberto Ramirez Jr., 32, of San Bernardino

Antonio Ramirez Perez, 45, of Los Angeles

Brian Anthony Lopez, 25, of Anaheim

Emily Marie Boatman, 27, of Ontario

Ricardo Parga Jr., 24, of Pomona

Steven Anthony Alfaro, 39, of Buena Park

Henry Castellano, 68, of Whittier

Elizabeth Gutierrez, 34, of Long Beach

Steve Allen Higgs, 72, of Corona

Montana — Legislature looking at PTSD for first responder: The Montana Senate is looking at a bill to give workers’ compensation to first responders impacted by post-traumatic stress disorder (PTSD).

The bill is SB 394 and it says police, firefighters and people working in prisons and jails may be eligible.

Source link: Business insurance — https://bit.ly/4kiIK6G

Oregon — New Workers’ Compensation Division Administrator: Matt West has been named the administrator of the Workers’ Compensation Division of the Oregon Department of Consumer and Business Services.

Oregon — Republicans Want Wildfire Hazard Maps Eliminated: For the last couple of years property owners have been complaining about the state’s wildfire hazard map that was developed a couple of years ago by forestry officials. It was then redone and the complaints continued.

Republicans in the Oregon Legislature want the maps done away with completely. They have introduced SB 678 that does away with the bill that created the wildfire hazard maps and that will — if passed — also do away with some of the funding for community resilience projects.

Governor Tina Kotek said residents should continue to send their complaints about the map to the Oregon Department of Forestry, but she is putting the appeals process on hold until the Legislature has time to take a harder look at the map.

House Republican Leader Christine Drazen says that’s not enough to protect rural property owners who are very uncertain about the future of their properties. “Property owners are understandably scared and confused,” Drazen said. “They're worried about their lives. They're worried about their future.”

Republicans are not alone in this fight. Senate Democrat, Sen. Jeff Golden says the maps don’t work.

“With another wildfire season already in sight, we have to move forward with what’s working well,” Sen. Golden said, “and correct this problem in a way that makes reasonable Oregonians feel heard.”

Source link: KEZI — https://bit.ly/4hSS3IO

Washington — Legislation (Senate Bill 5331) giving Washington’s Insurance Commissioner the authority to order restitution for harmed policyholders was voted out of the state’s Senate Business, Financial Services and Trade Committee today.

Currently, the Insurance Commissioner can fine insurance companies or professionals that violate the law but cannot order them to pay restitution to the people they’ve victimized. 

“The Office of the Insurance Commissioner is a quasi-legal and quasi-judiciary agency with our own administrative law judge and law enforcement officers,” said Washington State Insurance Commissioner Patty Kuderer. “It was designed to be a one-stop shop for policyholders. But under the current law, we cannot give people what they really want when they’ve been wronged by an insurance company or individual — their money back.” 

Fines collected by the OIC go to the state’s general fund. They do not go to policyholders who were wronged by an illegal actor. 

The bill, sponsored by Senator Adrian Cortes (D - Battle Ground) also authorizes the Insurance Commissioner to fine property and casualty insurance companies up to $10,000 per violation, rather than issue a total fine of $10,000. For health insurers, the limit is already $10,000 per violation or offense; SB 5331 would align the two.

Kuderer noted that the bill, and the authority it grants her office, don’t impact reputable insurance companies who agree to pay restitution as a condition of consent orders issued by her office. 

“Our office is focused on consumer protection and industry regulation, and the two go hand in hand,” she said. “This bill helps us help protect Washington consumers from bad actors and simplifies the process of making people go to court to get repaid.”

Kuderer previously testified on a companion bill before the House Consumer Protection and Business Committee.

The OIC issued $1.86 million in fines last year and has collected a total of $42.3 million in fines since 2001 that was sent to the state general fund.