Operations

Limo Operators Were Sold Fake Insurance in Georgia

Posted on March 2, 2005 by LCT Staff - Also by this author - About the author

ATLANTA – Thousands of taxis and limousines are being pulled off Georgia streets because authorities say the companies who own them were sold millions of dollars in bogus insurance policies. A cease-and-desist order was issued against two businesses that allegedly sold the fake policies to more than 150 companies throughout the state. One of the owners of those businesses was arrested soon after.

State Insurance Commissioner John Oxendine said there's no way to avoid at least temporarily pulling off the road vehicles that are not legally insured – even when their owners thought they were obeying the law. "These are innocent victims; they wrote a check and paid the premiums," Oxendine said. "But once we notify them, they will be breaking the law if they continue to operate before they get insurance."

Oxendine said it will probably take three or four days to notify all the affected companies. About 70 of the roughly 150 that have already been identified are in the Atlanta area, he said, but companies in virtually all of Georgia's largest cities were affected.

Phoenix Brokers Inc. and Main Street Brokerage Inc., both located in Barnesville, allegedly collected nearly $3 million in fraudulent insurance premiums during the past two-and-a-half years.

Soon after the cease-and-desist order was issued, authorities arrested co-owner Robert Waterhouse at his home in Thomaston, Ga. An arrest warrant was issued for his father and co- owner, Godfrey Waterhouse. Both father and son are natives of New Zealand, Oxendine said.

Oxendine said the policies sold by the Waterhouses were supposedly from Mark Solofa Insurance Co., a legitimate insurer located in American Samoa. However, the premiums were never passed onto the insurer and neither agent had a contract to represent Mark Solofa Insurance, Oxendine said. The insurance commissioner's office seized computer records and other files during Tuesday's arrest.

Wayne Culbreth, co-owner of Luxury Atlanta Limousines based in Tucker, Ga., said his company was notified by the commissioner's office back in December that the insurance they had purchased from the Waterhouses was fake. The company was able to switch insurance for its four limousines and luxury sedans to a legitimate company and keep its fleet on the road, but "we had just renewed our insurance and, within 30 days, we had to switch and pay for it again," Culbreth said. "It's been three or four months and we're still getting over that."

Culbreth said he hopes his company, and others like it, will be able to recoup some of the money they lost. He said he's glad the bogus insurance has been made public now, hopefully helping other transport companies avoid disaster. "If something happens and you have no insurance, you lose everything you've got," Culbreth said. "I hope they get a whole lot of years."

View comments or post a comment on this story. (0 Comments)

More News

Taxi Drivers, Chauffeurs More Likely To Die From Violence

CDC data shows they are the most likely workers to die on the job because of violent crime risks.

Uber Launches Internal Probe On Asia Bribery Allegations

The TNC sure has a lot of problems to deal with.

Tech Isn’t The Only Key To Growth

eNews WebXclusive: Terry Murtaugh insists while technology may make a business run more efficiently, personalized customer service must never fall by the wayside.

How Superficiality Destroys The Customer Service Experience

Don't just say you really care about your clients...show it.

MTA Bus, Charter Bus Collide In Queens

All victims were quickly taken off the buses, with the exception of one of the drivers who was pinned and needed to be extricated.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - September 2017 $12.95 MOTORCOACH / BUS ISSUE COVER STORY: * Irizar Racks Up A Good Rookie Year * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close