A widespread auto insurance fraud scheme involving tow truck companies has been uncovered in Southern California, with scammers allegedly holding vehicles hostage for cash payments. The California Department of Insurance has issued a public warning to drivers after an investigation led to the arraignment and charges against 16 individuals tied to the operation.
According to the department, fraudsters are exploiting drivers immediately after accidents by dispatching tow trucks to crash scenes without being called, convincing victims to allow their vehicles to be towed, and then demanding excessive fees -- often not covered by insurance -- for the release of the cars.
“This type of scam is preying on drivers at their most vulnerable moments -- immediately after an accident -- when they should be focused on their safety and next steps, not fighting to get their vehicle back,” said California Insurance Commissioner Ricardo Lara.
The Inland Empire Automobile Insurance Fraud Task Force, which includes multiple law enforcement agencies, uncovered an organized ring allegedly engaged in fraudulent insurance claims, collusive collisions and vehicle theft under false pretenses. Investigators found the group fraudulently collected more than $216,000 and was previously involved in similar schemes bringing vehicles stolen under false pretenses to California Collision in San Bernardino County.
How the Scam Works
Authorities have identified several warning signs for drivers to recognize these scams:
• A tow truck arrives within minutes of an accident before the driver has called for assistance.
• The driver is pressured into allowing the tow without selecting a repair shop.
• Victims are asked to sign documents or are told someone will contact them by phone.
• The tow truck driver arranges a rideshare for the victim, leaving them without access to their vehicle.
Once towed, the vehicles are taken to a body shop that demands hefty payments before releasing them, often misleading victims into believing the charges are insurance-approved.
Fraudulent Collision Reports and Insurance Scams
Investigators traced the scheme back to a California Highway Patrol (CHP) employee, Rosa Isela Santistevan, who was unlawfully selling traffic collision reports containing victims’ personal information. These reports were funneled through members of the fraud ring to orchestrate the scams.
Among those charged is Andre Angelo Reyes, identified as the ringleader, who allegedly obtained reports through CHP contacts, used them to target accident victims, and dispatched tow trucks to seize vehicles under false pretenses. The ring’s operations extended to fraudulent claims involving Certified Auto in Buena Park, where owners and employees would hold cars hostage until payments were made.
Protecting Against Tow Truck Fraud
The California Department of Insurance urges drivers to take precautions, including verifying a tow truck’s legitimacy with their insurance provider or waiting for CHP to confirm dispatch. Additionally, drivers should avoid signing any documents before speaking with their insurance company.
“If you suspect you’ve been targeted, report it immediately,” Lara emphasized. “Together, we can put an end to these predatory practices and hold bad actors accountable.”
The Riverside County District Attorney’s Office is prosecuting the case, with charges also including tax evasion of over $136,000. Anyone with information or who believes they have been a victim of fraud is encouraged to contact the California Department of Insurance at 800-927-4357 or visit insurance.ca.gov.
