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A Shrewsbury man who owned auto repair shops in Everett and Worcester has been sentenced to two and a half years in jail over a fraud scheme during which prosecutors say he damaged customers’ cars with a sledgehammer in order to inflate appraisal repair quotes, after which he would pocket insurance companies’ payouts without completing the work, Attorney General Maura Healey’s office said on Wednesday.
Adam Haddad, 44, pleaded guilty on Wednesday to 18 counts of motor vehicle insurance fraud, 15 counts of larceny by false pretenses over $1,200, three counts of attempted larceny and six counts of malicious destruction of property.
Additionally, ADH Collision of Boston Inc., owned by Haddad and located in Everett, and Accurate Collision Inc., formerly owned by Haddad and located in Worcester, each pleaded guilty to the charge of larceny by false pretenses over $1,200, per Healey’s office.
In total, he was convicted of stealing more than $170,000 from 11 insurance companies.
Haddad will serve six months in jail with the rest of the sentence suspended for three years of probation, as long as he pays $170,000 in restitution, surrenders his automotive appraisal license and completes a financial statement with supporting documentation every six months. He will be required to provide the Attorney General’s office with his individual and yearly tax returns for ADH Collision for the length of his three-year probation.
“Thirty years ago, the Insurance Fraud Bureau of Massachusetts was created for this exact reason; to combat automobile insurance fraud,” said Anthony DiPaulo, executive director of the Insurance Fraud Bureau, in a statement.
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Worcester Business Journal presents a special commemorative edition celebrating the 300th anniversary of the city of Worcester. This landmark publication covers the city and region’s rich history of growth and innovation.
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