Mercer County; New Jersey Auto Body Repair Shop Owner, Three Employees Charged with Auto Repair Insurance Fraud

July 17, 2007 -- TRENTON - New Jersey Attorney General Anne Milgram and Criminal Justice Director Gregory A. Paw announced that a Mercer County auto body repair shop owner and three of his employees were indicted today for their roles in an auto repair insurance scam.

According to Insurance Fraud Prosecutor Greta Gooden Brown, Robert Buckingham, 51, of Millstone, the owner/operator of Robert Christopher Collision, an auto body repair facility which does business on Kuser Road in Hamilton Township, and Paul Failla, 53, of Morganville, one of Buckingham’s employees, were indicted by a state grand jury on second-degree charges of conspiracy and insurance fraud, as well as two counts of third-degree theft by deception. Buckingham’s corporation, Robert Christopher Associates Inc., was also indicted on the same charges. Two additional employees, Hector Henriquez, 32, of Perth Amboy, and John Yeachshein, 43, of Manalapan, were charged with conspiracy to commit insurance fraud, insurance fraud and theft by deception, all third-degree offenses.

The indictment alleges that between April 12, 2005 and July 21, 2006, the defendants conspired to submit false automobile insurance repair claims to insurance companies. The defendants allegedly billed insurance companies for auto repair work that they failed to complete. In addition, the defendants allegedly billed insurance companies for new auto repair parts when they utilized old parts, and billed the insurance companies to replace auto parts when they merely repaired the damaged auto parts.

According to the indictment, the defendants also enhanced damage to cars brought to the repair facility so as to increase the amount of auto insurance repair claims. It is alleged that, in one instance, Buckingham directed his employees/co-defendants to repair the frame of an automobile by welding it when he knew that the insurance company expected a new frame.

The automobiles that were involved in the scheme included:

* a 1999 Lexus GS 300
* a 1999 Toyota Camry
* a 2004 Cadillac Escalade
* a 2002 Mazda Miata
* a 2004 Hyundai Santa Fe
* a 2001 Chevrolet Prism

Among the insurance companies to which allegedly false claims were submitted were New Jersey Manufacturers Insurance Company, Travelers Auto Insurance Company (formerly known as First Trenton Indemnity), Selective Insurance Company and Mercury Insurance Company.

As part of the Office of Insurance Fraud Prosecutor’s investigation into this case, a civil complaint seeking forfeiture of property owned and used by Robert Christopher Collision based on fraud was filed. As a result, the court has ordered Buckingham and Robert Christopher Associates Inc. not to sell or otherwise transfer assets of the business or the real property used by the business. The complaint seeks forfeiture of the assets and real estate from Buckingham and alleges that the property was used to commit the crimes alleged in the indictment.

State Investigator Wendy Wylie, Civil Investigator Frank Crosson, and Deputy Attorneys General Kristen Harberg, Christine Hoffman and Carol Stanton Meier were assigned to the investigation. Harberg presented the case to the grand jury. The National Insurance Crime Bureau assisted with the investigation.

“Far too frequently this office receives allegations of insurance fraud involving automobile repair businesses,” said Insurance Fraud Prosecutor Brown. “As in this case, the allegations often include inflating damage claims, charging for parts that were not supplied, and billing insurance companies for repair work not done.”

The indictment is merely an accusation and the defendants are presumed innocent until provent guilty. The indictment was handed up to Superior Court Judge Maria Marinari Sypek in Mercer County. The defendants will be ordered to appear in court at a later date to answer the charges.

Second-degree crimes carry a maximum sentence of 10 years in state prison and a criminal fine of $150,000, while third-degree crimes carry a maximum sentence of five years in state prison and a criminal fine of $15,000. In addition, the defendants may face civil insurance fraud fines.

Prosecutor Brown noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline 1-877-55-FRAUD or visiting the Web site www.njinsurancefraud.org. State regulations permit an award to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.

The Office of Insurance Fraud Prosecutor was established by the Automobile Insurance Cost Reduction Act of 1998. The office is the centralized state agency that investigates and prosecutes both civil and criminal insurance fraud, as well as Medicaid fraud.

Source: New Jersey Attorney General