DA: insurance scammers also bilked city taxpayers
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DA Seth Williams talks to reporters (Tom MacDonald/WHYY)
Philadelphia District Attorney Seth Williams says investigators have discovered that an auto accident scam that allegedly bilked insurance companies also tapped city taxpayers for $400,000 in phony charges.
Ronald Galati was charged in 2014 with faking car accidents to secure insurance claims.
Williams announced today that besides chearing insurance companites, Galati and his son allegedly colluded with Robert Otterson, who formerly worked with the city’s Office of Fleet Management to overbill taxpayers.
This alleged scheme involved collision repairs for the city of Philadelphia vehicles.
At a center city news conference, Assistant DA Dawn Holtz cited one inflated bill the city approved.
“The original estimate from Fleet Management was that it would take 60 hours to fix it,” Holtz said. “American Collision [Galati’s garage] charged 226.8 hours.”
The new criminal charges will be rolled into the trial with the old ones slated for later this year.
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