Two arrested in insurance fraud scheme that killed their friend

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Two Nevada men were arrested on suspicion of auto insurance fraud in an incident that killed another man allegedly involved in the scheme.

Oscar Zavala-Gallegos, 23, and Jorge Moreno, 24, were taken to the Washoe County (Nev.) Jail following an investigation by the Nevada attorney general’s office insurance fraud unit, according to the Reno Gazette-Journal.

Zavala-Gallegos allegedly asked Fabian Cedeno to steal and strip his 2002 Cadillac Escalade for parts to collect an insurance payment for the vehicle, the report said, citing court records. Zavala-Gallegos said he could not afford the $620 per month payment on the vehicle and he owed $22,000 on it.

After parking the vehicle at a local mall with the keys inside of it on July 4, 2008, police said. Moreno and Cedeno then took the Escalade, broke out a window and vandalized the car, according to the report. Zavala-Gallegos reported the vehicle stolen to Reno police.

Moreno said Cedeno was driving toward a guardrail to damage the vehicle and tried to jump to safety before the collision, the Gazette-Journal reported. Cedeno fell, suffered a head injury and later died from his injuries.

Moreno drove Cedeno to a local hospital, telling police Cedeno had been in a bar fight.

Investigators said the Escalade’s air bags did not deploy, indicating that no one was in the front seat at the time of the accident. Cell phone records linked the men, who authorities said came to know each other while working as carpenters.

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