10/22/2019
Geico Files Complaint Against Six Parties for Fraud
October 21, 2019 by Emmariah Holcomb
[email protected]
Government Employees Insurance Co., Geico Indemnity Co., Geico General Insurance Company and Geico Casualty Co. (collectively Geico), has filed a complaint against six parties in Arizona, alleging the group participated in “fraudulent acts” which included billing the auto insurer for windshield replacements that “never took place.” The parties being sued are: 808 Auto Glass, Jesse Pacheco, the sole member and operator of 808 Auto Glass, A&E Auto Glass, an Arizona limited liability company, Eric and Anna Solheim, who were the sole members and operators of A&E Auto Glass, Lightning Capital, a limited liability company that claimed to be a third party business, and Nicholas Minard, a managing member of Lightning Capital.
Geico, is seeking termination of what it alleges is an ongoing fraudulent scheme and to recover more than $100,000 that the defendants have improperly obtained from the insurance company through hundreds of non-reimbursable insurance claims. “Geico is seeking reimbursement for windshield replacement services and the installation and use of windshield parts – including mouldings, clips, and fasteners – attendant to the windshield replacements,” a portion of Geico’s complaint reads.
In addition to money damages, the insurance company also seeks a declaration that states it is not legally obligated to pay reimbursement of more than $160,000.00 in outstanding claims for auto glass services and auto glass parts that have been submitted or caused to be submitted by the six parties, also known as the defendants.
According to the complaint, Geico stated the auto glass claims involving this case were:
Fraudulent, in that they involved charges for illusory auto glass services and parts that were never performed and/or provided in the first instance;
Fraudulent, in that they were submitted through 808 Auto Glass, which never actually provided the services and parts, never obtained assignments of insurance benefits from the insureds; and
Were submitted in violation of contractual agreements between Geico and defendants Eric A. Solheim (E. Solheim), Anna M. Solheim (A. Solheim), A&E Auto Glass (collectively, the A&E defendants).
According to court documents, the alleged fraudulent scheme started in 2019 and has continued uninterrupted. The complaint also detailed how each party was allegedly involved in the aforementioned scheme.
“Pacheco claimed to serve as 808 Auto Glass’ sole manager and member, and allegedly conspired with the other defendants to use 808 Auto Glass as a vehicle to submit hundreds of fraudulent claims. A&E Auto Glass was used by E. Solheim and A. Solheim to secretly provide the auto glass services and parts to Geico’s insureds, and conspired with the other defendants. Lightning Capital was organized in Arizona on or about March 8, 2010, had Minard as its managing member, and was used by the defendants to facilitate the use of 808 Auto Glass as a vehicle to submit fraudulent billing,” a portion of the complaint reads.
Geico is currently seeking to recover financial damages under the civil racketeer influenced and corrupt organizations act (RICO) statutes.
