Police Bust Alleged Auto Theft Insurance Scam

A yearlong investigation into an auto theft insurance scam came to end with an arrest Friday, as KIRO 7 Eyewitness News cameras were rolling.

Man's Arrest Caught On Tape

Undercover Washington State Patrol detectives moved in to arrest Michael Daniels on suspicion of helping car owners scam insurance companies out of big money.

"This guy is acting as a broker between car owners and bad guys and police posing as bad guys," said John Anderson, a sergeant with Washington State Patrol.

Detectives said Daniels offered to take vehicles from people who were having financial troubles and then sell the cars to crooks so the owners could file a false insurance claim saying their car was stolen.

But Daniels unknowingly sold five vehicles to undercover officers, detectives said.

"The five vehicles we've purchased from him over the last year total up to about a $100,000 just in the insurance claims."

Police said Daniels, who is a car salesman, may have been partly motivated to help struggling people get rid of their cars so he could turn around and sell them new ones.

Daniels was booked into jail and police said next they planned on going after the car owners who filed those bogus insurance claims.