“Little Body Shop of Horrors” Nets 13

Pennsylvania police announced the arrests of 13 individuals for their alleged roles in an insurance fraud theft ring operated from a Philadelphia body shop. The two-year investigation, dubbed “Operation Little Body Shop of Horrors”, began in November 2008 and was originally focused on 41-year-old Phillip Sessa, the owner of a Philadelphia body shop.

However, according to the Philadelphia Inquirer, the investigation soon revealed multiple fraud schemes and connected twelve other individuals to the ring including 74-year-old insurance adjuster, Andrew Yates, who is accused of inflating estimates.

“According to court documents, Sessa, the alleged leader, and others allegedly would vandalize high-end cars – including a BMW, a Land Rover, and an Acura TL – parked on streets or at his auto shop, Philly Collision, 2501 Wharton St., Philadelphia. False or inflated repair claims would then be filed.”

“In other cases, car owners would “give up” the cars and then report them as stolen. Heather Castellino, a senior deputy attorney general, said that many cars had multiple claims and that it was unclear whether Sessa ever made the repairs.”

Authorities believe 22 fraudulent claims were filed during the operation which cost insurance companies more that $300,000.  Apparently, the money obtained from the scheme was used to pay gambling debts to an alleged loan shark named “Rocky.” 

Sessa, who authorities have dubbed the ringleader, was arrested and charged with corrupt organization, conspiracy, theft, receiving stolen property, and other related crimes. Bail was set at $1 million and he was remanded to the Delaware County prison.  Independent adjuster, Andrew Yates was also arrested and charged with insurance-fraud conspiracy, but was released after posting bail.  A full list and mug shots of those who were arrested can be viewed here. 

Authorities believe that several insurance companies were victimized by this scheme including State Farm Insurance in Concordville, High Point Insurance, Nationwide, Progressive and Travelers.