On June 23, 2021, Adam Haddad, the owner of Accurate Collision, Inc. of Worcester and ADH Collision of Boston, Inc. d/b/a Accurate Collision in Everett pleaded guilty to eighteen counts of insurance fraud, fifteen counts of larceny by false pretenses, three counts of attempted larceny and six counts of malicious destruction of property.
All the charges arose from a two-year investigation conducted by the Insurance Fraud Bureau and Attorney General Maura Healy’s Office of complaints by insurance companies concerning the fraudulent activities of Mr. Haddad and his body shops. See Agency Checklists’ article of April 2, 2019, “Accurate Collision Auto Repair Shops & Owner Indicted On 75 Counts For Defrauding 11 Insurers Of $170,000.”
Police serving search warrant seize video of Mr. Haddad sledgehammering vehicles to get higher insurance pay-outs
During the investigation of Mr. Haddad and his body shops, the State Police attached to the Attorney General’s Office and the Everett Police served a search warrant on the Everett body shop seeking evidence of insurance fraud. The security cameras that Mr. Haddad had installed at ADH Collision caught him using sledgehammers, mallets, and pieces of wood to damage insured vehicles that his customers had trusted him to repair to enhance the damage and get more money from the sale of parts and labor.
In his guilty pleas, Mr. Haddad admitted, as the Attorney General had alleged that he regularly enhanced damage and caused new damage to insured customers’ vehicles to inflate the insurance appraisal quotes for his labor, paint, and parts reimbursement requests. Also, that he would then make an additional profit by pocketing the insurance company’s check and not completing the repairs for which the insurers had paid.
After Mr. Haddad pleaded guilty, Judge Paul Wilson sentenced him to two and one-half years in jail with six months to serve and the balance suspended for three years of probation with the condition that he pay the insurers involved $170,000.00 in restitution. The restitution is payable to ten of the eleven insurance companies who made payments to Mr. Haddad and his companies under the false pretense concerning the damages to Mr. Haddad’s companies. One insurer is waiving restitution and proceeding civilly seeking multiple damages and attorney fees from ADH Collision and Mr. Haddad.
The court’s restitution order requires Mr. Haddad to make a $5,000.00 payment within the next thirty days, to surrender his automobile damage appraiser’s license, and to submit updated financial statements with supporting documentation every six months.
The court’s restitution order also requires Mr. Haddad to provide the Attorney General’s Office the tax returns for ADH Collision during the three-year term of his probation.
Corporations plead guilty to larceny by false pretenses
Mr. Haddad’s companies, ADH Collision of Boston Inc., located in Everett, and Accurate Collision formally owned by Mr. Haddad and located in Worcester, each pleaded guilty to the charge of larceny by false pretenses over $1,200.00. However, the Attorney General entered a nolle prosequi on these indictments except for the indictment involving The Hanover Insurance Company, which the court placed on file.
Sentenced stayed until Mr. Haddad surrendered himself for federal prison sentence for tax fraud
The state court sentence was stayed until June 25 as the court ordered that he serve the state sentence concurrently with the eight-month sentence that he received in February from the United States District Court for his filing fraudulent withholding statements for payments made under the table to Accurate Collision’s employees. In that federal case, Mr. Haddad received an eight-month prison sentence and was ordered to pay restitution of $292,000.00 of which he had paid $250,000.00 before his sentencing. See Agency Checklists’ article of April 6, 2021, “Auto Body Shop Owner Sentenced For Tax Fraud.”
On Friday, June 25, 2021, Mr. Haddad surrendered himself and entered federal custody at FMC Devens, a federal medical center located at the former military base in Devens, Massachusetts.
Under federal rules, Mr. Haddad will have to serve at least seven months of his eight-month sentence.
Officials involved in prosecuting Mr. Haddad and his body shops
Assistant Attorney General Jennifer Cotter, Chief of the AG’s White Collar and Public Integrity Division, prosecuted Mr. Haddad with assistance from Massachusetts State Police, Digital Forensics Laboratory Investigators, and Victim Witness Advocate Amber Anderson, all from the Attorney General’s Office. In addition, the Attorney General’s Office received assistance from the Everett Police Department and Investigators at the Massachusetts Insurance Fraud Bureau.