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Published on Thursday, May 15, 2008
By Rick Coca
Two San Fernando Valley men suspected of faking 2,600 car accidents in the past two years were arrested Thursday in what investigators called a multimillion-dollar auto-insurance fraud ring that included attorneys, doctors and chiropractors.
Alexander Igor Gutman, 46, of Sherman Oaks faces 29 felony charges, and Laszlo Aldar Bango, 35, of Van Nuys faces 13 felony counts. Prosecutors said Gutman was the ringleader and Bango his accomplice.
Bail was set at $5 million for Gutman and $2million for Bango. If convicted on all charges, Gutman could face 40 years in prison and Bango, 16 years.
"Paper accidents," with no real collisions, accounted for most of the claims to insurance companies, Los Angeles County Deputy District Attorney Gregory Alker said.
Authorities believe auto body shops, doctors, chiropractors and attorneys were all involved in making fake accidents seem legitimate and in raking in tens of millions of dollars
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