Fast Cars, Fast Money, Fast Track to Jail?

If the name Mikel Mewbourn sounds familiar, it’s because he was accused of insurance fraud stemming from a house fire in 2008.  Mewbourn was one of three men who were accused of planning to defraud the banks that backed the mortgage for the Greenwood Village mansion. He was listed as one of the builders, and once the home was gutted by arson, he was suspected of having a part in the fire. The charges were later dropped.

While those charges were dropped, he faces a new legal battle on accusations of fraud.  This time around, Mewbourn is alleging property damage from hail and that his Ferrari was stolen. According to CBS News, investigators are saying that he and a group of suspects have collected more than a quarter of a million dollars ripping off insurance companies.

In the 27-page indictment about the case, investigators say that he is lying to his insurance company about his Ferrari –stating that not only did he pocket the insurance money, but that he then chopped up the car and sold the parts, such as the engine for $10,000.

Investigators also say that Mewbourn collected nearly $39,000 in insurance for the equity on the car.

“They get a lot more from the insurance company than they have in the vehicle,” Colorado Attorney General John Suthers said.

Suthers also announced a lengthy indictment, which is being filed against Mewbourn and five other suspects.

It is also noted in the indictment that Mewbourn allegedly destroyed two motorcycles –by “dragging them from the rear of his truck,” which he was paid about $35,000 for. He apparently told his insurance company that the motorcycles fell out of a trailer.

Mewbourn is also accused of faking “hail damage claims” and staging a “three-car accident” to collect tens of thousands of dollars more.

“We’re seeing more and more of these accident frauds, fake hail damage fraud cases,” Suthers said.

“In this case they were running cars into walls, they have nothing in the vehicle, and then they make a claim for the damage. Ultimately it’s not the insurance company that suffers the loss, they’ll pass that on to their customers,” Suthers said.

Mewbourn, who is currently in custody, faces up to 24 years in prison if convicted.