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Investigators bust chop shop used as demolition derby

DECATUR,None — State investigators say a DeKalb County repair garage is the center of a fraud investigation.

Agents from the Insurance Commissioner's Office raided the place armed with guns, a search warrant and suspicions of a brazen insurance ruse.

Channel 2's Jim Strickland asked the shop owner, Miguel Hurtado, "Miguel, do you have any comment about your arrest?"

"No," Hurtado answered.

"Were you running an insurance fraud ring?" Strickland asked.

"No," answered Hurtado.

Agents raided his auto body shop, hauling away boxes of documents, computer gear and two pit bulls.

Investigators suspect the shop was home to a dubious demolition derby.

"There were perhaps some cars being collided into each other, for the purposes of making insurance claims," fraud unit chief Drew Lane said.

A new employee who identified himself only as Kevin was backing his boss.

"He runs a legitimate business here. In the few days I've been here I've never seen anything like that come through," Kevin said.

Investigators are also checking parts found there against stolen car reports. One customer who showed up during the raid said his vintage muscle car vanished while being repaired at the shop.

"It was a rare '87 Cutlass Supreme. It had a special European front. They didn't make that many of them," car owner Bo Palmer said. "I'm out a car."

"Probably on average between 20 and 30 percent of your insurance premium goes to pay for insurance fraud," Agent David Renaud of the National Insurance Crime Bureau said.

Investigators said more arrests and more charges are expected.

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