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Pittsburgh Auto Repair Shop Owner Pleads Guilty to Insurance Fraud

20 May 1999

Pittsburgh Auto Repair Shop Owner Pleads Guilty to Insurance Fraud

    SAN ANTONIO, May 19 -- The owner of a Pittsburgh, Penn.,
automobile repair shop pleaded guilty earlier today to ten counts of insurance
fraud and theft by deception.  The court sentenced Gary Villani, owner of
Unique Autos, Inc., to house arrest for a period ranging from 3-6 months, 30
months probation, a fine of $1,000, 50 hours of community service and full
restitution to USAA.
    The case was prosecuted by the Insurance Fraud Section of the Pennsylvania
Attorney General's Office, based on a referral from USAA, an insurance and
financial services association based in San Antonio, Texas.
    "This case is a perfect example of the lengths that USAA will go to
protect its members from insurance fraud," said Jack Dever, director of claims
security for USAA.  "We hope this case serves notice to fraud artists as well
as to deter those who might think they can make insurance fraud a profitable
endeavor."
    In its criminal complaint, the Pennsylvania Attorney General's Office
alleged that Unique Autos did not abide by the requirements of USAA's
Streamlined Automotive Repair Service (STARS) direct repair program.  The
program identifies preferred service providers who meet strict eligibility
criteria in the repair of damaged vehicles owned by USAA policyholders and
their claimants.
    The investigation into possible wrongdoing by Unique Autos began in 1995
when USAA investigators suspected the repair shop of overcharging for new
replacement parts that were not replaced and for charging for repairs and
replacement of parts that were not damaged.
    USAA's investigation of 10 cars showed deviations between the actual
repairs and the damage appraisal conducted by Unique Autos.  The repair
estimates were electronically transmitted to USAA's claims documentation
system and claim checks subsequently were issued by USAA to Unique Autos.  In
all 10 cases, USAA's policyholders were not notified of the deviation nor did
they authorize Unique Autos to deviate from the repair agreement.  All 10 of
USAA's policyholders dealt directly with Mr. Villani.
    USAA's Special Operations Unit -- a specialized unit of investigators who
protect USAA's policyholders from the incidence of insurance fraud -- turned
over key evidence to the Attorney General's Office during a three-year period.
Their investigation aided in the successful prosecution of Mr. Villani.
    USAA has been serving present and former members of the U.S. military and
their families for more than 76 years as one of America's leading insurance
and financial services companies.  The association, well known for its
exceptional customer service, offers its 3.3 million members and associate
members a full range of insurance, banking and investment products and
services designed to help them meet their financial security needs.
Headquartered in San Antonio, Texas, with offices throughout the United States
and Europe, USAA owns or manages assets of more than $56 billion.