Autoblog

Watch Where You Store: Minneapolis man busted for driving, crashing customer's Lamborghini

Michael Harley — Tue, 29 Jan 2013 09:15:00 EST

"Looking for a company you can trust? Look no further!" says the boldface type on Top Gear Autoworks' website, an automotive service, repair and storage shop in Minneapolis, Minnesota. Not a very wise move, say the local authorities, after recently arresting David Juntunen, the 40-year-old male owner of the shop, and charging him with insurance fraud after an unauthorized - and destructive - late-night joyride in a customer's Lamborghini.

According to the official report, in late 2011 a customer entrusted Top Gear Autoworks to store a 2007 Lamborghini Gallardo through winter. Believing the car was tucked safely away for the next several months, probably sucking on a trickle charger, the owner suspended its collision insurance.

Everything seemed fine until March 9, 2012. That was when the State alleges that Juntunen and Pamela Dupont (a 41-year-old lady friend) plowed the Italian exotic into a few trees and a couple light poles at 2:00 AM. Instead of calling the cops to investigate, the two brought the vehicle back to the shop and Juntunen filed his own insurance claim for the repairs (the damage estimate was $82,480 for the car and $10,000 for destroyed property) saying the vehicle was simply being moved between his facilities. The insurance company, after doing a bit of investigation and learning that a Lamborghini had been witnessed driving at a high rate of speed in the area by two different observers (including a police officer), denied the claim.

But there is always more to these stories. In a post-crash conversation, Juntunen told the owner of the Lamborghini that his earlier statements to the police constitute insurance fraud and he mentioned that Dupont wasn't behind the wheel. Most damning, however, was the discovery that he has a criminal history including third-degree criminal sexual conduct, third-degree burglary, motor vehicle theft and multiple alcohol-related driving convictions meaning any vehicle he operated was required to have an ignition interlock. Ugh.

Watch Where You Store: Minneapolis man busted for driving, crashing customer's Lamborghini originally appeared on Autoblog on Tue, 29 Jan 2013 09:15:00 EST. Please see our terms for use of feeds.

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Even more images of the airport full of 15,000 flood-damaged Sandy cars

Chris Paukert — Fri, 04 Jan 2013 12:44:00 EST

Filed under: Car Buying, Etc., Safety

The damage from a major natural disaster can be harrowing - loss to life and limb combined with property damage, environmental, economic and psychological impact make picking up the pieces difficult. But long after the crisis ebbs, the damage lingers, becoming ever more pernicious and difficult to discern. Mold inside walls, unseen weakened structures... they all get covered up with fresh coats of paint. So, too, it is with the automobiles affected.

We first told you about these cars yesterday, but now professional photographer Doug Kuntz has agreed to share his incredible aerial images with Autoblog so we can pass them on to you, the reader. Going one better, Kuntz has given us more than twice as many images than what you saw on the Weather.com link yesterday.

The runways full of cars seen above are the four-wheeled remnants of Hurricane Sandy - but they aren't all headed to the scrap heap. These vehicles are but part of the over $63 billion in damage brought by the late October storm, but insurers are hoping to recover some of their own damages by auctioning some of them off, parting others out, and scrapping the rest. The runways of Calverton Executive Airport on Long Island shown above are now home to 15,000 such vehicles - a sliver of an estimated 230,000 cars and trucks damaged or written-off by Sandy.

Some of the cars shown in these images will join thousands of others that will filter their way back into the used car market in some form or another. New York law dictates that complete vehicles must have their titles stamped as "flood" to alert buyers, but it's not uncommon for that to not happen, whether born of intent to deceive or simple neglect.

Snapper Kuntz urged Autoblog to warn you, the reader, of the danger of purchasing flood-damaged cars like these, including damaged electrical and safety systems. In Sandy's case, he didn't just see these vehicles from the air:

"I saw some of these cars parked on the streets of Rockaway with the bags deployed. I talked with tow truck drivers and mechanics who moved these cars, and have worked on Katrina wrecked cars. The tow truck drivers confirmed the airbag deployments, and the mechanics agreed about the problems taking time to show, and be very expensive to fix, and in some cases, not worth the cost."

Kuntz, who referred to such vehicles as "ticking time bombs," believes strongly that all the affected vehicles should be scrapped, and he agreed to share these images with us as long as we relayed his valuable warning. We join him in urging caution when wading into the used car market at all times, but particularly following major disasters like Sandy. It can take weeks, months or even years for flood-damaged cars to reveal themselves, so get your prospective buys properly inspected. And if there's any doubt in your mind, well, just check out the gallery above for 15,000 good reasons why walking away is usually the smart move.

Even more images of the airport full of 15,000 flood-damaged Sandy cars originally appeared on Autoblog on Fri, 04 Jan 2013 12:44:00 EST. Please see our terms for use of feeds.

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Trial of man whose Bugatti Veyron went in the drink mysteriously delayed [w/video]

Jeremy Korzeniewski — Wed, 03 Oct 2012 16:58:00 EST

Filed under: Coupe, Performance, Government/Legal, Videos, Bugatti, Luxury

The mysterious case of the drowned Bugatti Veyron has taken another turn toward the strange.

Before we get too far ahead of ourselves, let's bring you up to speed: Andy House, who owns an exotic car repair shop called Performance Auto Sales, crashed his Veyron into a lagoon in Texas after allegedly being distracted by a low-flying pelican... or something. Naturally, House turned a claim into his insurance company for the totaled supercar to the tune of $2.2 million, which is likely more than the car is actually worth.

Shortly thereafter, video surfaced of the crash, with nary a distraction in sight. The next makes-you-go-hmm moment occured when reports surfaced of a new Veyron, along with a pair of Lamborghini coupes and a Porsche 911 GT3, landing in House's garage. The estimated cost of these supercars, according to Jalopnik, is $2.2 million. All of this made Philadelphia Indemnity Insurance Company's insurance fraud lawsuit in 2011 - two years after the incident - come as little surprise.

So, the latest: For some completely unknown reason, the lawsuit between House and his insurance company has been delayed. Jalopnik reports that nobody, including the office of the Galveston Court Clerks, has been able to explain why the trial did not start as planned. That said, as soon as we find out more, so shall you.

A video from local news station KLTV can be seen below.

Continue reading Trial of man whose Bugatti Veyron went in the drink mysteriously delayed [w/video]

Trial of man whose Bugatti Veyron went in the drink mysteriously delayed [w/video] originally appeared on Autoblog on Wed, 03 Oct 2012 16:58:00 EST. Please see our terms for use of feeds.

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If you're going to fake being run over, make sure a dashcam isn't on

George Kennedy — Tue, 04 Sep 2012 19:59:00 EST

Filed under: Government/Legal, Safety, Humor

If you live in certain parts of the world, it's probably best just to own a dashcam and leave it running at all times. Luckily, this Taiwanese driver had is camera rolling and was able to prevent himself from becoming a scam victim. He is not alone in this fight.

In the video, a girl is seen standing in the street before she runs at the car and lunges onto the hood, acting as if she had been hit. The intrepid driver, knowing that he has the upper hand in this ruse, exits his vehicle and begins chiding the would-be scammer for her failed attempts. One would assume that in taking the phone out of its holster, he was alerting the authorities of this incident - except for the fact that he appears to be a law enforcement officer himself (so says the video's YouTube description).

This type of scam is rampant throughout various parts of the world, usually involving other vehicles, but in this case it was a human being. It has prompted many drivers to leave dashcams rolling constantly. An unexpected byproduct of this self-preservation effort is an abundance of documented automotive chicanery. Russia alone has to be the world leader in absurd dashcam videos.

Click below to watch the video.

Continue reading If you're going to fake being run over, make sure a dashcam isn't on

If you're going to fake being run over, make sure a dashcam isn't on originally appeared on Autoblog on Tue, 04 Sep 2012 19:59:00 EST. Please see our terms for use of feeds.

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Was that viral photo of a motorcycle cop crash-landing into convertible a scam?

Zach Bowman — Tue, 03 Apr 2012 08:15:00 EST

Filed under: Etc., Government/Legal, BMW, Police/Emergency, Motorcycle

The LA Weekly reports there may have been more to the viral news story of a motorcycle police officer who ended up with his legs in the air in the back seat of a BMW convertible after a traffic collision. Following an 18-month investigation, prosecutors have officially dropped the three misdemeanor assault charges against driver Brian Hitchcock after the man's lawyers discovered Hermosa, California officer Anthony Parente had a history of questionable accidents and hefty workers' compensation claims.

Hitchcock was charged with assault, reckless driving and a third misdemeanor after Parente accused the man of speeding in the parking lane, swerving in front of the officer and then jamming on his brakes once Parente hit his lights and sirens. The bike then struck the BMW, catapulting Parente into the rear seats of the vehicle. The two had been next to each other at a stop light moments earlier.

But Hitchcock reportedly maintained his innocence throughout the ordeal, saying he accelerated normally and never cut the motorcycle off. Eye witnesses corroborated his version of the story, and Hitchcock's lawyers found Parente had filed for workmans' compensation six times in recent years, three of which were in his four years with the Inglewood School Police Department where he served before joining the Hermosa Beach Police Department in 2005.

Furthermore, Hitchcock's lawyers discovered Parente had allegedly pulled a similar stunt with a cop car after ramming one Peter Brown. Brown's insurance paid Parente's claim. Hithcock's did not, with the man vowing to fight the charges tooth-and-nail in court. Parente, meanwhile, is currently on medical leave with workman's compensation for soft tissue damage some 20 months after the accident.

Was that viral photo of a motorcycle cop crash-landing into convertible a scam? originally appeared on Autoblog on Tue, 03 Apr 2012 08:15:00 EST. Please see our terms for use of feeds.

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Infamous Bugatti offshore excursion going to trial for insurance fraud [w/video]

Zach Bowman — Wed, 30 Nov 2011 11:28:00 EST

Filed under: Coupe, Performance, Etc., Government/Legal, Videos, Bugatti, Luxury

It appears the gentleman who piloted his Bugatti Veyron into a Texas lagoon has run into a spot of legal trouble. The insurance company that paid out $2 million for the trashed exotic is calling fraud on the whole scenario, and a federal judge has decided that the claim should go before a jury. Andy House of Lufkin, Texas, originally purchased the Veyron after securing an interest-free $1 million loan from Lloyd Gillespie. Philadelphia Indemnity Insurance Company alleges House attempted to pay a confidential informant to steal the Bugatti and set it on fire so that he could later claim insurance on the vehicle and double Gillespie's initial investment.

Before that could happen, however, House drove the Veyron into a salt water marsh. Amateur video captured the vehicle calmly exiting the paved surface and splashing down, and House later said that he had swerved to avoid a pelican on the road while trying to pick up a dropped cell phone. The vehicle's owner then left the supercar idling in the salt water for 15 minutes until the vehicle died of its own accord. House claimed that he was being bitten by mosquitos at the time and didn't want to return to the car to turn off the engine.

The insurance company also claims that the collector's car policy House took out on the vehicle doesn't apply in this case since House violated the terms of the policy. Philadelphia Indemnity Insurance Company claims House put over 1,200 miles on the vehicle in the three weeks he owned it. Hit the jump to check out the video once again.

Continue reading Infamous Bugatti offshore excursion going to trial for insurance fraud [w/video]

Infamous Bugatti offshore excursion going to trial for insurance fraud [w/video] originally appeared on Autoblog on Wed, 30 Nov 2011 11:28:00 EST. Please see our terms for use of feeds.

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Watch an auto shop commit insurance fraud

Jonathon Ramsey — Mon, 21 Nov 2011 15:00:00 EST

Filed under: Etc., Europe, Government/Legal, Videos

We won't say it's human nature to cheat, but humans and cheating go together often enough to make us consider it.

In another example of trying to make crime pay, Castilla y León television captured an auto shop in Spain that it says was intentionally damaging cars in order to get insurance money. The shop reportedly drove cars into walls, into lifts and even into other cars after the business was closed for the day. The fraud apparently benefits the shop because the more pieces it has to put back together, the more profit it earns per item. We're just glad a disgruntled employee who was fired and wanted revenge decided to tip the authorities, and for that we thank him.

The Spanish-language video is after the jump, and it includes sacrificial Audi, Renault, Mercedes-Benz and SEAT autos, among others. It ain't pretty.

Continue reading Watch an auto shop commit insurance fraud

Watch an auto shop commit insurance fraud originally appeared on Autoblog on Mon, 21 Nov 2011 15:00:00 EST. Please see our terms for use of feeds.

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Cheaters claiming luxury cars as farm equipment for cheaper insurance

Jeff Glucker — Tue, 12 Jul 2011 18:01:00 EST

Filed under: Etc.

Perhaps it's time that insurance companies start taking a closer look the policies they dole out. San Francisco-based Quality Planning agrees, and that's why the company works with insurers to help cut down on some of the fraud found throughout the industry. One area that's a bit surprising? The amount of luxury cars that wind up covered as farm equipment.

Auto insurance companies typically offer discounts for vehicles that are exclusively used on or near farmland. There's less traffic, and therefore it's less likely that the vehicle will be involved in an accident. Quality Planning took a look at approximately 80,000 vehicles insured as farm equipment, and found that nearly eight percent might not be sowing any oats.

One enterprising "farmer" listed their Audi A4 as farm equipment, despite the fact that his or her slice of land was located in Brooklyn, New York. Checking the farm equipment box netted the owner a savings of $389 per year. Another "farmer" classified their Cadillac Seville for special use, despite living in Los Angeles. The Caddy owner was saving $61 per year.

Those figures don't sound like a lot in an age of expensive car insurance. That's not the case, however, when you step back and examine the fraud as a whole. All told, people reportedly scam the auto insurance industry out of $150 million per year. We know you don't feel too bad for them, but you'll probably get a little ticked off when you realize that money is recouped on the backs of honest car-insurance-paying folks like yourself.

Cheaters claiming luxury cars as farm equipment for cheaper insurance originally appeared on Autoblog on Tue, 12 Jul 2011 18:01:00 EST. Please see our terms for use of feeds.

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National Insurance Crime Bureau: Staged accident claims up 46%

Chris Shunk — Sat, 15 May 2010 17:04:00 EST

Filed under: Government/Legal

The major recession that began in 2008 has had a profound effect on the auto industry, and even insurance companies have paid a heavy price for the downturn. While legitimate insurance claims have shrunken a bit since fewer jobs mean fewer motorists on the road, the National Insurance Crime Bureau (NICB) claims that fraudulent claims from staged accidents jumped 46 percent from 2007 to 2009.

While we're sure there are a lot of folks out there who aren't too fond of insurance companies, staged accidents are different in that they involve innocent victims who were otherwise obeying the law. Worse, these accidents could result in injuries or even death. In a press release (available after the jump), the NICB calls staged accidents "dangerous criminal events that target innocent drivers with increasingly bold schemes aimed at defrauding insurance companies out of millions of dollars."

Florida leads all states in staged accidents by a large margin, with 3,006 in 2009. New York came in second with 1,680, followed by California, Texas and Illinois. New York City is the top offender by city, but Florida again leads with three offending cities in the top five. The NICB created seven videos demonstrating some of the many techniques criminals use staged accidents to bilk insurance companies. They're not particularly high-quality, but they do get the message across.

[Source: NICB]

Continue reading National Insurance Crime Bureau: Staged accident claims up 46%

National Insurance Crime Bureau: Staged accident claims up 46% originally appeared on Autoblog on Sat, 15 May 2010 17:04:00 EST. Please see our terms for use of feeds.

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PSA: If you're going to attempt insurance fraud, you might want to avoid posting on YouTube [w/video]

Chris Shunk — Mon, 15 Mar 2010 09:29:00 EST

Filed under: Coupe, Performance, Etc., Government/Legal, Videos, Nissan

Insurance Fraud GT-R? - Click above to watch the video after the jump

Why is it that people engaged in illegal activities feel compelled to record their indiscretions? It's just a really, really bad idea. And a bad idea becomes an act of outright stupidity when said video is published on YouTube, where any random investigator can easily find evidence that can be used against the guilty party. This just makes sense, right? Obviously not for everyone.

According to the San Gabriel Valley Tribune, Jay Chen, the 21 year-old owner of a wrecked Nissan GT-R, apparently now knows this lesson all too late, as the accused street racer allegedly crashed his Ivory Godzilla on a Glendora mountain road in California. The SGVT reports that Chen and his sister Tracey gave insurance investigators conflicting testimony after the March, 2009 accident, sending up red flags. Chen later called the insurance company and informed them that he would pay for the damages himself, only to claim another accident three months later on 60 Freeway in Riverside, CA.

Unfortunately for Chen, during the paperwork processing following that 'second' accident, the body shop informed Chen's insurance company that it had been holding on to the mangled GT-R since March. Investigators then searched YouTube for any evidence of the incident, and apparently they believe that they've found it - the insurer alleges that the footage shown after the jump incident shows damage consistent with that of Chen's GT-R after a mountain run with a Mitsubishi Evolution IX MR goes awry. The actual crash doesn't look all that bad, but the apparent $76,000 repair bill shows that near-supercars can cost a boatload of money to fix.

Regardless of the severity of the accident, as a result of the investigation, Chen has officially been charged with six felony counts of insurance fraud, and his sister has been charged with one count. If you are in your late teens or early 20s and you're wondering why you're paying over $300 per month to insure your battered Honda Civic, hit the jump to see why.

[Sources: San Gabriel Valley Tribune, YouTube]

Continue reading PSA: If you're going to attempt insurance fraud, you might want to avoid posting on YouTube [w/video]

PSA: If you're going to attempt insurance fraud, you might want to avoid posting on YouTube [w/video] originally appeared on Autoblog on Mon, 15 Mar 2010 09:29:00 EST. Please see our terms for use of feeds.

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REPORT: Tough times yield more insurance fraud cases

Michael Harley — Tue, 30 Jun 2009 09:01:00 EST

Filed under: Etc., Government/Legal, Hirings/Firings/Layoffs

They're called owner "give-ups," and their rise is a sign of the tough economic times. Despondent over being financially strapped and unable to cover car payments, vehicle owners are ditching, sinking, or torching their vehicles and reporting the loss to collect insurance payoffs. According to authorities, most of the titleholders aren't seasoned criminals. In fact, many of the false claims are filed by first-time offenders -- people who normally wouldn't steal a piece of candy from a store. However, the desperate owners see insurance companies as "rich and fat," says James Quiggle, a spokesman for the Coalition Against Insurance Fraud. Many think the insurance companies won't miss a few dollars.

Well, of course they will. Owner "give-up" cases result in felony charges of insurance fraud, making false statements to police and insurance providers, and arson if the car was burned. A better solution for cash-strapped owners, say experts, is to attempt to renegotiate payments, sell the car, or trade it in for a less expensive model. While you generally won't come out ahead, those transactions are legal and they'll keep you out of the slammer.

[Source: Detroit News | Image Source: Mark Dadswell/Getty]

REPORT: Tough times yield more insurance fraud cases originally appeared on Autoblog on Tue, 30 Jun 2009 09:01:00 EST. Please see our terms for use of feeds.

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People turn to torching cars in bad economy

Michael Harley — Tue, 14 Oct 2008 18:29:00 EST

Filed under: Trends, Etc.

Vehicle owners behind in their payments and faced with mounting debts have begun taking matches to their cars and trucks in an effort to stop their payments and collect the insurance settlements. Unfortunately, in most cases the attempts backfire (pun intended). According to police, when delinquencies on auto loans rise, owner-involved arson jumps as well. Between 2004 and 2007, "potential owner give-ups" (most of which involve torched vehicles) nearly doubled nationally. Distinguishing between an actual theft-and-burn and an owner-induced arson is the job of investigators who often find such cases easy to crack.

For example, recently a pair of Chrysler Pacificas were burned and it just so happens that that particular model was only reported stolen 98 times across the nation this year - the so-called "theft" raised more than a few eyebrows at headquarters. In another case, a Yukon owner claimed his truck was stolen and burned overnight. Police knew that the thief likely had the keys (Yukons are especially difficult to hot-wire) so their focus was immediately turned towards the owner who had conveniently left "two cans of gasoline" in the back. In yet another case, the late-paying owners had significantly lowered their deductible just days before the reported theft.

Over their heads in debt, fraudulent owners choose arson because the burned-out vehicle shells are often found immediately by authorities, and the insurance companies settle and disburse payments quickly. That is, assuming they haven't fallen behind on their insurance bills as well! Thanks for the tip, Ben!

[Source: Washington Post, photo by Maryland State Fire Marshall]

People turn to torching cars in bad economy originally appeared on Autoblog on Tue, 14 Oct 2008 18:29:00 EST. Please see our terms for use of feeds.

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