Department of Commerce and Consumer Affairs

DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS

DAVID Y. IGE

GOVERNOR

CATHERINE P. AWAKUNI COLÓN

DIRECTOR

GORDON I. ITO

INSURANCE COMMISSIONER

 

FOR IMMEDIATE RELEASE

Aug. 6, 2015

Honolulu Man Prosecuted for Auto Insurance Fraud

HONOLULU  — The Hawaii Insurance Division’s Fraud Branch announces the successful prosecution of Tony Phommachanh for auto insurance fraud.

On Oct. 15, 2013, Phommachanh was driving his Lexus GS300 without insurance, when he crashed his car into another vehicle at the intersection near S. Beretania and Keaaumoku Streets. Immediately following the accident, Phommachanh obtained insurance with Progressive Casualty Insurance Company, intending to have the insurance company pay over $5,000 for damages.

In April 2015, a jury found Phommachanh guilty of intentionally and/or knowingly misrepresenting and/or concealing material facts to Progressive, with the intent to obtain insurance benefits.

First Circuit Judge Dexter D. Del Rosario sentenced Phommachanh yesterday to four years of probation, 100 hours of community service, and standard terms and conditions and fines.  Insurance fraud carries up to five years of imprisonment and a possible $10,000 fine.

“Insurance fraud raises insurance premiums, and we will continue to investigate and prosecute anyone who tries to steal from insurance companies,” said Insurance Fraud Administrator Colleen Chun. “Ultimately, Hawaii’s policyholders can end up paying higher premiums due to those defrauding the insurance companies.”

To report suspicious activity or for more information on insurance fraud, call the Insurance Fraud Hotline at (808) 587-7416.

The Hawaii Insurance Division oversees the state’s insurance industry; issues licenses; examines the fiscal condition of Hawaii-based companies; reviews rate and policy filings; and investigates insurance related complaints.

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