Coltin Barody, 26, of Lake Elsinore, allegedly had his 20-year-old nephew, Jacob Holloway of San Diego, beef up the insurance coverage on a motorcycle after it was stolen, according to the California Department of Insurance.
Holloway owed money on the bike, but only had liability coverage, meaning he would have still been responsible for paying off the loan, according to the DOI.
Investigators allege Barody came up with the plan to augment the insurance coverage on the bike, then lie about when and where the motorcycle was stolen. Holloway and his 21-year-old wife, Melinda Minshall, then allegedly relayed the story to Progressive Insurance Co. and received $13,000.
Investigators uncovered texts stating the theft occurred before the policy had been increased, according to the DOI.
Barody was arrested by the San Diego Urban Auto Insurance Fraud Task Force last week and is scheduled to be arraigned Tuesday on an insurance fraud charge. Holloway and Minshall were issued notices to appear in court, according to the DOI.
—City News Service
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