Incline Village, Nevada Auto Body Shop Owner Sentenced In Fraud Scam

July 2, 2007 -- Reno, NV – Nevada Attorney General Catherine Cortez Masto announced today the sentencing of Richard Johnson of Incline Village on charges of insurance fraud. Johnson is the owner of Ritch’s Body Shop in Incline Village.

Johnson pled guilty on Conspiracy to Commit Insurance Fraud charges after the Attorney General’s Insurance Fraud Unit conducted an undercover investigation of the business with the help of Farmer’s Insurance. The Unit had received information that Johnson was charging his clients’ insurance companies for new parts and not placing new parts on the vehicles but rather fixing the old parts. The undercover investigation revealed that he was, in fact, billing for new parts and only repairing the old parts.

On June 28, 2007, Judge Janet Berry in the Second Judicial District Court sentenced Johnson to one year in prison, but suspended the sentence and gave Johnson probation for the one year term. Johnson was also ordered to pay $16,000 in restitution and investigative costs.

“Insurance fraud is one of the costliest white-collar crimes in the United States, ranking second only to tax evasion,” said Attorney General Masto. “The cost of this crime is passed onto citizens in the form of the increased costs to purchase and maintain insurance coverage.” The Insurance Fraud Unit within Nevada Attorney General’s Office actively investigates and prosecutes cases of insurance fraud across the state. Contrary to popular opinion, insurance fraud is not a victimless crime. If you or someone you know have information regarding a suspected instance of insurance fraud, call the Nevada Attorney General’s Fraud Hotline at: 1-800-266-8688. Complaint forms and more information on the Insurance Fraud Unit are available on the Attorney General’s Office website at www.ag.state.nv.us.

Source: Nevada Attorney General

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