The U.S. Division of Justice charged a San Francisco towing firm operator this week with insurance coverage fraud on the identical day that federal brokers executed search warrants at one in every of his tow yards.
Jose Vicente Badillo, 28, the towing firm operator, is going through mail fraud, wire fraud, and cash laundering prices associated to a scheme to defraud an auto insurance coverage firm. Additionally charged within the case is 30-year-old Jessica Elizabeth Najarro.
The U.S. Division of Justice charged the operator of San Francisco towing firm Specialty Towing this week with insurance coverage fraud.
(SF.gov)
Federal prosecutors alleged in a legal criticism that Badillo and Najarro conspired to defraud the corporate by submitting a fraudulent insurance coverage declare on a wrecked automobile that he had bought in June 2019. Prosecutors stated the automobile Badillo bought already had front-end harm and a non-functioning engine.
Nonetheless, prosecutors alleged Najarro took possession of the automobile, bought insurance coverage for it, then filed a automobile accident declare. They stated she acquired an insurance coverage reimbursement examine for $34,000 and deposited it in a Wells Fargo Checking account allegedly managed by Badillo.
Badillo was arrested Thursday, the identical day that FBI brokers have been executing a number of search warrants in San Francisco, together with at one of many towing yards operated by Badillo and his spouse, Abigail T. Fuentes.
A spokesperson with the Division of Justice stated Badillo was arrested at a residence in the course of the FBI raids. Badillo was later launched after posting a $50,000 bond.
Badillo and Fuentes didn’t reply to requests for remark.
It’s the newest legal case introduced towards Badillo who, together with Fuentes, is going through a number of felonies stemming from an alleged welfare fraud scheme that was introduced towards them in October by the San Francisco County district legal professional’s workplace.
Prosecutors in that case alleged that as a Human Companies Company employee, Fuentes permitted Badillo’s functions for public welfare applications and didn’t disclose her relationship to him.
They alleged that the pair additionally lied about their revenue and belongings to obtain different public advantages together with Medi-Cal and CalWorks.
Prosecutors stated whereas each schemes have been taking place, Badillo and Fuentes collectively operated three towing companies between 2018 and 2023. Prosecutors stated the three firms — Auto Towing, Jose’s Towing and Specialty Towing and Restoration — generated greater than $2 million in gross annual revenue.
The scandals began to return extra into mild in April after a video, which went viral, confirmed a Specialty Towing truck driver attempting to tow a pair’s automobile whereas they have been stopped at a pink mild in downtown San Francisco.
The U.S. Division of Justice charged a San Francisco towing firm operator this week with insurance coverage fraud on the identical day that federal brokers executed search warrants at one in every of his tow yards.
(SF.gov)
The video reveals the truck reversing with its wheel-lift lowered, trying to hook the entrance wheels of a silver Honda sedan, which stored reversing to keep away from the tow truck.
By then, Badillo and Fuentes had been banned from working within the metropolis due to the welfare fraud case and allegations that one in every of their firms was taking advantage of unlawful tows.
In August of final 12 months, San Francisco Metropolis Atty. David Chiu initiated debarment proceedings towards Auto Towing to ban them from bidding or receiving contracts for 5 years after investigators realized workers had illegally positioned a towing signal within the parking zone of a neighborhood financial institution and towed vehicles with out permission between February and Might 2023.
An indication warning that vehicles might be towed.
(SF.gov)
The debarment course of usually requires an administrative listening to earlier than contractors accused of misconduct are prohibited from receiving metropolis funds.
Chiu stated lots of the victims whose vehicles have been towed have been residents who primarily spoke Spanish and Cantonese, a gaggle that’s already vulnerable to predatory towing.
“Auto Towing additionally made it troublesome for automobile house owners to retrieve their autos, restricted the hours when autos might be retrieved, and pressured automobile house owners to pay in money,” Chiu stated in a written assertion on the time.
As a part of the method, Chiu listed seven witnesses together with automobile house owners and the financial institution’s department supervisor in court docket paperwork. Additionally included within the criticism have been images that confirmed tow vans hooking up vehicles from the financial institution’s parking zone, in addition to a receipt for greater than $500 that Chiu stated every automobile proprietor needed to pay to retrieve their autos.
Chiu took further motion in February by suspending Badillo and Fuentes in addition to the three firms they collectively function, instantly prohibiting them from receiving public funds and receiving contracts till the welfare fraud case is resolved.
“Fuentes and Badillo have demonstrated a transparent sample of predatory conduct designed to complement themselves on the expense of probably the most susceptible amongst us,” Chiu stated in a written assertion. “Our Metropolis has little interest in contracting with exploitative companies engaged in unlawful conduct.”
