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Take from the The Daily Journal San Mateo news paper on Friday June 27
Auto repair shop owner charged with fraud
By Michelle Durand
The owner and general manager of a Redwood City auto repair shop kept dead mice and droppings on hand, using both as props to convince customers they needed $1.2 million in fraudulent repairs, according to prosecutors who charged the pair with dozens of felonies.
The fraud was uncovered by a State Farm Insurance audit to determine the statewide average cost of rodent damage, said prosecutor Sharon Henry of Insurance and Worker's Compensation Fraud Unit.
While the average was approximately $1,900 in California, claims at Redwood City-based Group Specialist were more than $10,000, Henry said.
The finding sparked a two-year investigation culminating in the arrest yesterday of owner Bita Imani, 35, and her husband Mehran Baranriz, 45, who works as the general manager. Both were charged with 56 counts of presenting fraudulent claims and five counts of grand theft by false pretenses. Imani is also charged with four counts of tax fraud while Baranriz is charged with two counts of perjury.
The San Carlos couple appeared in court Thursday but will be further arraigned Monday morning at which time they will seek reduction of their $2 million individual bail.
Group Specialists, located at 421 Burlingame Ave.in Redwood City, is a Mercedes and BMW auto service and repair business.
Victims of the scam were told their vehicles had water or rodent damage and needed expensive repairs. A new engine wiring harness was a common part requested, Henry said.
The owners and insurance adjusters were allegedly told rodents had chewed on wires and were shown dead mice in the engine compartment.
The rodent damage was staged Henry said.
The couple kept mice on hand, for that purpose, she said.
The mice were painted black to look like rats, added Chief Deputy District Attorney Steve Wagstaffe.
Between January and March Imani and Baranriz allegedly billed 25 insurance companies for 236 fraudulent claims.
Parts and labor billed were not replaced or performed, prosecutors said.
The total amount exceeded $1.2 million.
The evidence shows both Imani and Baranriz were involved in the fraud, if not personally placing the props then being aware of the other's actions, Henry said.
Henry was quiet about the involvement of other workers but said some of the prosecution witnesses will be prior employees.
On the company's Web site, Imani extols the shop's virtues and displays its 2005 Certificate of Achievement for outstanding customer service from the Better Business Bureau.
At least a few online reviewers, however, were not so kind. Two former customers using posted similar experiences of bringing in vehicles and being given laundry lists of problems with expensive fixes. Both posters wrote that other mechanics later informed them the alleged problems were not accurate.
A call to the auto repair shop went unanswered.
Aside from the false billing charges, Imani is also accused of fraudulently reporting income on her tax forms for 2004 and 2005.in she failed to file an income return, Henry said.
Baranriz perjury charges stem from documents filed with the Department of Motor Vehicles.
The couple each face approximately 60 years in prison if convicted of all charges.
Anyone with concerns about repair work by Group Specialists is asked to call the San Mateo County Insurance Fraud Unit at 363-4936.
Michelle Durand can be reached by e-mail:.
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