Michigan man caught selling scam auto insurance, $200 for year of coverage

Michigan man caught selling scam auto insurance, $200 for year of coverage

WAYNE COUNTY, MI – A Michigan man has pleaded guilty to felony charges related to using Facebook to sell fraudulent car insurance, officials announced Thursday, July 15.

Anthony Johnson, 30, was selling cheap, fake car insurance policies online that appeared to be through 21st Century Insurance Company, officials said. He offered a six-month policy for $150 and a 12-month policy for $200,

The scam was aimed at “exploiting customers’ needs for affordable insurance,” Michigan Attorney General Dana Nessel said in a statement.

Johnson was found out through an undercover investigation by the Michigan Department of Insurance and Financial Services (DIFS). Through a check with 21st Century, investigators determined that the insurance documents were fraudulent. A search of DIFS databases showed that Johnson is not licensed to sell insurance in Michigan.

Originally charged with five felony counts, Johnson pleaded guilty last week before Judge Chandra W. Baker in Wayne County’s 3rd Circuit Court to one count of using a computer to commit a crime, a seven-year felony; and one count of insurance fraudulent acts, a four-year felony.

Johnson’s sentencing is set for 9 a.m. on Aug. 20 before Baker.

“While we will continue to hold accountable those who break the law, I also encourage people to do their research before purchasing any type of service that’s advertised online,” Nessel said.

Buying fraudulent insurance can also lead to criminal charges for drivers and leaves them uninsured in the event of a crash, said DIFS Director Anita Fox said.

Michigan’s new auto insurance law, which went into effect on July 1, 2020, provides lower cost options and includes an amnesty period (no increased premiums or penalties), for uninsured drivers who seek coverage before Jan. 1, 2022, she said. More information can be found at Michigan.gov/AutoInsurance.

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