Dover – A Townsend man pled guilty last week to insurance fraud after reporting his pickup truck stolen, with the theft supposedly occurring three weeks after the car was found in a New York City chop shop.

 

After an investigation by the Delaware Department of Insurance fraud bureau, Karl Raichle of Pine Tree Road in Townsend pled guilty to one count of insurance fraud in Superior Court on June 11. On June 13, he was sentenced to one year of probation.

 

Delaware fraud investigators believe the case is an example of a type of insurance fraud known as a “give up,” where a vehicle owner turns the car over to the illegal market and then reports it stolen in order to escape the auto loan or lease payments.

 

On April 11, 2007, the New York Police Department’s auto theft unit purchased Raichle’s 2005 Nissan Titan during an undercover chop shop sting operation. The police, suspecting a “give up,” traced the vehicle’s registration and insurance and notified the insurance company, GEICO, which waited to see if a claim would occur.

 

On May 1, Raichle called the Delaware State Police and reported that his truck was stolen out of his driveway sometime during the night. Raichle then contacted GEICO and filed a stolen vehicle claim. After initially allowing the claim to be processed because the New York undercover operation was ongoing, GEICO contacted the Delaware insurance fraud bureau to investigate and arrest Raichle.

 

Raichle has not told authorities how his truck ended up in the New York chop shop.

 

“This case not only illustrates one variety of insurance fraud, but also the good working relationship between agencies that can catch such frauds – in this case, NYPD, GEICO’s fraud unit, Delaware State Police and our Fraud bureau,” Commissioner Denn said.