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Friday, 22 August 2014 00:00

Auto Glass Fraud Lawsuit Ruled in Favor of Allstate

California’s Sonoma County Superior Court has ruled in favor of Allstate and the State of California in a lawsuit against  a local man accused of creating a fraudulent billing scheme for auto-glass and windshield replacements totaling more than $1.4 million.

The judgment, announced by Allstate, was issued against Reshat Alkayisi on March 31 by Judge Nancy Case Shaffer. Court records alleged Alkayisi engaged in an elaborate scheme to create multiple bogus auto-glass replacement businesses, by using fake names and identities, and then deceived insurers by submitting fraudulent claims. Several of his family members had their names used without their consent or knowledge.

Allstate alleged Alkayisi violated California law by repeatedly submitting hundreds of claims to receive payment for OEM windshields and windows when he installed less expensive varieties of auto glass.

Judge Nancy Case Shaffer agreed with Allstate and ordered Alkayisi to pay $1.18 million in penalties, plus $441,508 in assessments and fees—a $1.6 million judgment.

“Submitting even one false insurance claim isn’t just a bad idea—it’s fraud, and insurance fraud is a crime,” said Allstate’s California Senior Field Vice President Phil Telgenhoff. “Fraud drives up the cost we all pay for insurance by stealing millions of dollars from insurers.”

“Allstate will fight fraud to help protect our customers and keep insurance costs down,” Telgenhoff said.

Allstate presented evidence that Alkayisi created multiple sham auto glass installation businesses using fabricated names and identities in an effort to deceive insurers and increase his opportunities to submit fraudulent claims. Alkayisi could not be located for comment. He is on probation for a felony check forgery, and the judge in that criminal case has given Alkayisi permission to travel to Turkey for one month starting on Aug. 15, according to court records.

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