13 Charged In South Philly Auto Insurance Fraud Schemes

MEDIA, Pa. (CBS) -- Thirteen people are facing insurance fraud charges stemming from operations at a South Philadelphia auto body shop.

Phillip Sessa, 41 (right), of Ventnor, NJ, owns Philly Collision, at 25th and Wharton.  He allegedly was the mastermind behind the scheme that allowed at least ten high-end car owners to defraud their insurance companies of over $300,000 over a year's time, with the help of an insurance adjuster and "chop shop" operator.

At a press conference on Thursday morning, Pennsylvania State Police Maj. George Bivens said, "In some instances, Sessa or other persons associated with him would vandalize or damage vehicles that were either parked on public streets or were located at Philly Collision. Sessa or the car owners would then submit fraudulent claims to their respective insurance companies in order to receive payment for the repairs to these vehicles."

Many of those vehicles were later reported stolen -- to rip the insurance companies off further, according to police.

See the Police Department's Expanded List of Those Charged (.pdf)

Tessa faces a number of felony fraud counts, and police says more charges and arrests could be on the way.

Reported by David Madden, KYW Newsradio 1060.