Federal agents say they have broken up an insurance fraud scheme operating out of a Deerfield Beach car repair shop.
FBI agents arrested six men, including two insurance claims adjusters with Allstate Insurance Co.
A four-count federal indictment unsealed on Thursday charges the six with defrauding Allstate of an unspecified amount of money by submitting false or inflated claims for four cars repaired between July and October at Foreign Cars Unlimited Inc., a repair shop at 176 SW 14th Court.
Named in the indictment are shop owner Karim Ghanem and three mechanics at the shop, Mohammed Ghanem, Mohammed Hamze and Adel Jarde.
Also named in the indictment were Jeffrey Egler and Darrell Holmes of Allstate Insurance Co. The two men worked to verify insurance claims from policyholders.
The indictment says workers at Foreign Cars Unlimited caused superficial damage and removed parts from cars being repaired at the shop. They then cited the damage and missing parts to inflate car-repair estimates submitted to Allstate through Egler and Holmes, according to agents.
The indictment says Karim Ghanem paid Egler and Holmes an unspecified amount of money to submit the false and inflated repair estimates to the insurance company.
Agents say the shop owner also offered incentives to the owners of the cars being repaired to make sure they wouldn’t complain to Allstate about inflated estimates. The incentives included repairs of prior damage, routine maintenance and service, replacement of worn tires and installation of accessories.
If convicted, each defendant faces up to five years in prison and $250,000 in fines for each of the four charges.
All six men are charged with wire fraud. Karim “Abdul” Ghanem is charged in three counts. Egler is charged in three counts. Holmes is charged in one count. Hamze is charged in three counts. Mohammed “Mike” Ghanem is charged in two counts. Jarde is charged in one count.
