Brooklyn Autobody Shop Owner,Employee Indicted On Insurance Fraud

Auto body shop owner Elie Berger and his employee Hershy Greenberger were indicted today on insurance fraud charges surrounding an enhancement scheme that set out to intentionally further damage cars brought in for auto repair, in an effort to inflate the insurance bills.

The office of Kings County District Attorney Charles J. Hynes held the press conference today at Renaissance Plaza in downtown Brooklyn to announce the indictments of the two ringleaders.

Berger and Greenberger worked out of the Perfect Collision shop in Borough Park. The District Attorney's office was contacted following a visit to Perfect Collission by a Geico claims adjuster who became suspicious that incidents of fraud were taking place at the shop.

The D.A.s office began an investigation, which included turning in for servicing at Perfect Collision an undercover damaged vehicle. Similar to the Geico claims adjuster, D.A. investigators noted the vehicle sustained more damages while under the shop's care. The full investigation would later lead to Berger's and Greenberger's indictments.

“These crooks thought they had found the perfect crime, but my Detective Investigators quickly put the brakes on, preventing another bogus collision,” said D.A. Hynes at the conference.

In addition to the enhancement scheme, the investigation, which started a little over a year ago, also revealed that the defendants were charging Geico for renting “replacement” vehicles, although no such replacement vehicles were provided.

Detective investigators executing search warrants on Perfect Collision and Berger’s home recovered more than $700,000 in cash, a 2011 application for public assistance claiming Berger earned $350 per week as an employee of Perfect Collision and other business records.

Evidence recovered in the searches will be used to investigate other crimes Berger may have committed, including insurance fraud and welfare fraud.

At the conference, Hynes expressed frustration at elected officials and current laws that do little to combat auto fraud. As a no-fault state, insurance companies must pay for damages regardless of who is at fault when an accident occurs in New York.

Hynes is working with several elected officials and district attorney in surrounding counties on proposals that would make it a C-felony to submit a fraudulent bill or recruit someone to stage an accident

The D.A.'s office also is seeking to increase penalties for fraud and allow insurance investigators more time to look at suspicious claims.

“Brooklyn remains one of the most at-risk counties for insurance fraud,” said Hynes. “Auto-insurance fraud costs residents hundreds of thousands of dollars each year in increased premiums, and my office will prosecute all such claims to the fullest extent of the law.”