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Pair charged with auto insurance fraud in California

Posted On Mon, January 4, 2010

Recently, two residents of California were arrested and charged with felony fraud in relation to an alleged auto insurance scam.

Jenny Kouch, 27, and Peter Huynh, 43, were each charged. According to an investigation by members of the California Department of Insurance, Huynh's wife and Kouch were involved in an auto accident. Afterward, Kouch and Peter Huynh allegedly worked together in a scheme to make it appear as though Kouch had insurance at the time of the accident.

It is claimed that Kouch filed an auto insurance policy with Esurance after the accident, and that Peter Huynh filed a claim with MetLife that misrepresented the facts of the case. Both face up to five years in prison and $10,000 in fines.

Steve Poizner, insurance commissioner for the state, noted that auto insurance schemes only increase prices for other consumers.

"This is not a victimless crime and we work hard to make that apparent to those who commit them," Poizner said.

According to the Insurance Information Institute, fraud accounts for 10 percent of the taken on by insurance companies from property and casualty cases. In all, that amounts to approximately $30 billion a year.

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