Forklift Fraud Ring Exposed

Police uncover all sorts of staged accidents - often with another car, sometimes a tree, or perhaps the occasional telephone pole. According to city prosecutors, at the University Collision Center in Philadelphia prefers to use forklifts - with car bumpers attached to the front.  Seriously?  A host of characters have been charged, including an attorney, a police officer, and several employees of University Collision Center. 

As reported on philly.com, a forklift was supposedly modified by attaching one of three types of car bumpers to the tongues to create a variety of scrapes, dents and tears on automobiles. City prosecutors allege that University Collision workers would then report the damages to insurance companies for inflated payouts. 

Seth Williams, Philadelphia’s District Attorney, announced charges on Tuesday against University’s owner and manager, along with seven auto damage appraisers, a Philadelphia police officer, and a personal injury lawyer. Williams states that, over the last four years, they collaborated to cheat insurers out of millions of dollars.

“This is not a victimless crime,” Williams said. “All Philadelphia consumers are affected.”

Williams also noted that in February of 2010 his office was contacted by State Farm Insurance Co. about University’s business dealings.

Vicki Markovitz, an Assistant District Attorney, noted that the damage appraisers were independent and reviewed claims for most major insurance companies.

The insurance fraud units Assistant District Attorney, David Augenbraun, noted that forthcoming arrests are likely, and will probably include customers who knowingly allowed false claims to be filed.

“The customers may not feel like victims,” Augenbraun said, “but if they are caught, they will be in very substantial trouble.”

According to Augenbraun, an undercover detective who posed as a customer agreed to an inflated repair bill of $4,600. University allegedly gave him $200, which they called a refund.

He also noted that Cottrell, a Philadelphia police officer, was allegedly steering accident victims to the University and pocketing 20% cash for each “customer” brought in, and is said to have also filed false damage claims for some of his own cars.  Augenbraun stated that Cottrell was arrested at his home on Tuesday morning. A spokeswoman for the police noted that Cottrell had been suspended for 30 days with intent to dismiss.

Deputy Police Commissioner Richard Ross, who joined Williams, said corrupt officers are a minority of the 6,000-member department: “It’s very sad that all the other men and women on the force have to deal with this.”

University Collision Center remained open on Tuesday, with Augenbraun saying that it would likely continue in business during the prosecution and the trial in order to maintain some assets for victim restitution. He also said the company is being monitored, and that the forklift and other devices were seized by police.

The insurance fraud unit is said to have launched an undercover investigation which the help of a decoy car provided by Nationwide Insurance and National Insurance Crime Bureau, and a decoy insurance policy provided by GEICO.

Although investigators are still working to estimate the amount of the operation’s illegal proceeds, Augenbraun said some kickbacks paid were as high as $1,000.

Markovitz said thousands of false insurance claims were filed during the scheme.

As a result of the 13-month investigation, these 11 people were charged:

• David Coleman of Chadds Ford, who manages University Collision,  
• A Philadelphia Police Officer named Gary Cottrell. This 15-year veteran of the force allegedly traveled throughout the city, often in uniform, to direct accident victims to University Collision. He is called a “wreck chaser,”
• The seven appraisers included four from Philadelphia: Arthur Juliano, Addaie Amankwaaw, Cheryl Stanton, and Steve Wilkinson. The others were from South Jersey: Dave Robertson and John Howell, both of Cherry Hill, and Richard Reilly of Mullica Hill,
• Edward Hildebrandt of Philadelphia, who is the owner of University Collision, and
• Michael B. Wolf of Phoenixville, a lawyer with a practice in the area, who allegedly advised Hildebrandt and also apparently helped him file several phony personal injury claims.

Wolf is a lawyer who has been licensed in Pennsylvania since 1988, and works at the firm of Kotsopoulos & Wolf P.C. They have offices in King of Prussia and Cherry Hill. He could not be reached for comment.

Hildebrandt could also not be reached at University, which operates from shops in Grays Ferry and Manayunk.

According to Augenbraun, the 10 people left to be charged are expected to surrender or be arrested over the next week.

All the defendants ware charged with corrupt organization, dealing with unlawful proceeds, insurance fraud, theft, and conspiracy. Except for Wolf and Coleman, all were also charged with bribery.