Owner of Calif. glass replacement chain guilty of defrauding insurers

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The owner of a California-based automobile glass replacement company with more than 60 stores nationwide was convicted on several counts, including overcharging insurers for moldings and other parts never used.

Mehrdad Hakimian, 48, the owner of Glass Emporium of Marin, Calif., was convicted of conspiracy to commit wire fraud, nine counts of wire fraud and one count of obstruction of justice, according to the U.S. Attorney’s Office for the Northern District of California.

A federal jury found that Hakimian had, from 1999 through 2006, conspired to defraud insurance companies by misrepresenting the type and price of windshields installed, overcharging the companies and destroying and concealing documents to impede an ongoing FBI investigation into his company.

Evidence presented at the trial showed that Hakimian directed employees in the Oakland, Calif., corporate office and managers throughout the country to falsify invoices sent to insurance companies for the replacement of windshields and other automobile glass.

Prior to the trial, Hakimian pleaded guilty to two counts of harboring illegal aliens, a single count of conspiracy to commit visa fraud, nine counts of visa fraud and two counts of concealing undocumented foreign employees from U.S. immigration officials.

Former Glass Emporium employee Aldy Antonio pleaded guilty to a count of wire fraud last year, as did Bobby Guinto, who is still an employee, according to the U.S. Attorney’s Office.

Glass Emporium’s vice president, Emma DeGuzman, recently pleaded guilty to one count of harboring an illegal alien and one count of visa fraud.

An investigation into the business began five years ago when an employee at a store in Tennessee reported possible fraud linked to the Glass Emporium corporate office. State Farm investigated the matter and found it was defrauded in more than 300 of the 400 claims it investigated.

Hakimian is scheduled for sentencing June 11 and could face decades in federal prison.

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