2 Lawyers Charged in Major Auto Insurance Fraud Scheme

Two lawyers were arrested Wednesday and charged with spearheading a major auto insurance fraud ring in Los Angeles that allegedly netted the two men millions of dollars during the last two years.

Dist. Atty. Ira Reiner and state Insurance Commissioner John Garamendi said the breakthrough in the case was significant because lawyers often are at the heart of fraud rings. But they almost never are charged because they delegate the work to subordinates, then deny any knowledge of the crimes, the officials said.

“These are the first really big-time lawyers, the first major operators, we’ve gotten,” Reiner said.

Alan Michael Shapiro, 42, of Santa Clarita was arrested about 6 a.m. after finishing a workout at the Hollywood YMCA. Warren Michael Finn, 54, of Marina del Rey was taken into custody as he prepared to go jogging.

Authorities said the two masterminded a ring that is suspected of setting up car accidents and fraudulently representing as many as 1,000 clients, earning the firm more than $14 million.

Police also arrested David Shin, 32, of Northridge and Gaudencio (Goody) Simon Basa, 37, of Los Angeles, whom they said was the administrator of the Shapiro & Finn law firm at 5455 Wilshire Blvd. Shin, authorities said, acted as a “capper,” or recruiter, and referred more than 1,000 clients to Shapiro and Finn in exchange for $1.75 million in fees.

Reiner said Basa was involved in two types of recruiting--victims of real accidents who were willing to exaggerate claims and those who agreed to stage accidents. Authorities said most of the staged accidents involved collisions between co-conspirators.

State and local authorities froze all assets of the four men in civil court filings. All four men pleaded not guilty Wednesday. Shapiro and Finn face charges of conspiracy, insurance fraud, money laundering and tax evasion, and are being held on $5 million bail each. Shin also is being held on $5 million bail, and Basa on $1 million. All will remain in custody pending a bail hearing Monday.

Shin was charged with conspiracy to commit capping, money laundering and tax evasion of more than $1.5 million in unreported income. Basa faces conspiracy, fraud, money laundering and tax evasion charges.