Since May of 2024, the Organized Auto Insurance Fraud Task Force, a specialized division of investigators from California’s Santa Clara District Attorney’s Office, the CHP, and the California Department of Insurance, set up a sting operation. Investigators would use bait cars with damage ranging from minor to severe to see if body shops would commit insurance fraud.

If not the owners themselves, investigators also looked to see if shop owners would encourage customers to commit fraud in hopes of a bigger payout.

The County of Santa Clara tested several body shops and found them clean—but it caught Jairon Escobar, owner of Radiator & Body Parts in San Jose, red-handed.

Investigators used a “newly purchased” Toyota Camry with a single dent in it as a bait car. Almost right away, Escobar was encouraging the undercover agent to commit fraud.

The undercover bait car had thousands worth of damage, apparently

Not only did Escobar tell the agent what to say to the insurance company, but he also submitted falsified reports to the insurance company.

“Escobar encouraged the undercover officer to tell the insurance company that there was more than $3,000 in damages to the vehicle. Escobar submitted the vehicle estimate of repairs to Mercury Insurance,” wrote the DA’s office.

Investigators apprehended Escobar the following week, and now he faces trial for attempting insurance fraud—a felony charge.

The DA hopes to make an example of him

Jeff Rosen, the county’s district attorney, hopes neighboring shops—which largely operated as expected—see Escobar as a warning.

His trial should also be a warning to drivers, who could face serious penalties if they’re convicted of falsifying reports.

“To body shop owners that choose illegal profits over honest work, know this: an undercover officer could be your next customer,” he wrote in a statement. “Fraud isn’t worth your freedom. Auto insurance fraud drives up premiums and hits drivers in their wallets.”