Bugatti Veyron wreck - Insurance Fraud
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GALVESTON - Lufkin auto dealer Andy House had no idea a video camera was running as his $1.2 million Bugatti Veyron EB plunged into a La Marque lagoon two years ago.
House told police that a seagull made him veer off the Interstate 45 feeder road and into 3 feet of salt water.
The video taken by a passing motorist, which was posted on Youtube, and information from a confidential informant led Philadelphia Indemnity Insurance Co. to accuse House in a federal lawsuit of intentionally driving his car into the lagoon in order to collect the $2.2 million insurance on the car. It had a 1,001 horsepower engine capable of propelling it to 253 mph.
House, who sells exotic cars, denies the accusation and has countersued the insurance company for failing to pay as promised. His attorney was not immediately available for comment.
House told police that he was retrieving his dropped cell phone from the floorboard and looked up to see a seagull heading straight for him. The insurance company says the video shows no seagull and no attempt to brake as the Bugatti swerves off the road and into the water. The lawsuit also says that House allowed the engine to run for 15 minutes after the car entered the water, causing further damage to the engine.
House explained the delay in shutting off the engine by saying he was being bitten by mosquitoes, the lawsuit says.
A confidential informant told insurance investigators that House offered to pay the informant to steal the car and burn it so that House could collect the insurance money, the lawsuit says. House also offered to pay the informant to remain silent during the insurance investigation, the lawsuit says.
The informant told investigators that House's business associate, Lloyd Gillespie, conspired with House. Gillespie, also a defendant in the lawsuit, lent House the money to buy the Bugatti and was listed on the policy as the payee, the lawsuit says.
Gillespie has denied the allegations in court filings. His attorney, Tod Philips, declined comment.
A trial date for the lawsuit, filed in June 2010, has not been set.
House told police that a seagull made him veer off the Interstate 45 feeder road and into 3 feet of salt water.
The video taken by a passing motorist, which was posted on Youtube, and information from a confidential informant led Philadelphia Indemnity Insurance Co. to accuse House in a federal lawsuit of intentionally driving his car into the lagoon in order to collect the $2.2 million insurance on the car. It had a 1,001 horsepower engine capable of propelling it to 253 mph.
House, who sells exotic cars, denies the accusation and has countersued the insurance company for failing to pay as promised. His attorney was not immediately available for comment.
House told police that he was retrieving his dropped cell phone from the floorboard and looked up to see a seagull heading straight for him. The insurance company says the video shows no seagull and no attempt to brake as the Bugatti swerves off the road and into the water. The lawsuit also says that House allowed the engine to run for 15 minutes after the car entered the water, causing further damage to the engine.
House explained the delay in shutting off the engine by saying he was being bitten by mosquitoes, the lawsuit says.
A confidential informant told insurance investigators that House offered to pay the informant to steal the car and burn it so that House could collect the insurance money, the lawsuit says. House also offered to pay the informant to remain silent during the insurance investigation, the lawsuit says.
The informant told investigators that House's business associate, Lloyd Gillespie, conspired with House. Gillespie, also a defendant in the lawsuit, lent House the money to buy the Bugatti and was listed on the policy as the payee, the lawsuit says.
Gillespie has denied the allegations in court filings. His attorney, Tod Philips, declined comment.
A trial date for the lawsuit, filed in June 2010, has not been set.
I can't believe it has been 2 years since that happened. Looks like it isn't going to well for him.
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House explained the delay in shutting off the engine by saying he was being bitten by mosquitoes, the lawsuit says.
Real Smart guy there.....Thats the best he could think of?!?! Criminals are idiots and its a good thing they are.
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A little more info
http://galvestondailynews.com/story/276126
‘Informant’ Comes Forward
The insurance company also claims an unnamed confidential informant reported additional facts indicating fraud. The lawsuit claims the informant stated House offered to pay him to steal the car and burn it so that House could claim the insurance money.
After the Bugatti wreck, House offered to pay the informant part of the insurance money in exchange for his silence during the investigation, the lawsuit states.
The case has 70 federal court filings, including a list of expert witnesses. The insurer retained Rimkus Consulting Group of Houston to reconstruct the incident. It found the car had been traveling at 51 mph in the seconds before the wreck and that 2 seconds elapsed from the time the car first left the shoulder until entering the water.
The report claims House should have had sufficient time to respond to the car veering off road.
“Within the accident reconstruction community, it is expected that the majority of drivers can respond to an emergency situation in 1.5 seconds,” the report states.
Men tend to respond faster than women and reaction time tends to increase above age 35, according to the report. House was 34 at the time of the crash.
No Water In Air Intakes
The Bugatti had a waterline 29 inches off the ground. There was damage to the undercarriage, and many of the visible connections were corroded. The alarm system engaged, some of the lights turned on, and it appeared multiple electronic control systems were damaged.
Although it appeared water entered the exhaust system, the car’s air intakes were well above the water line, and the report found no visible evidence of water in the intakes or engine contamination.
Another report from Auto Damage Appraisers of Houston valued the Bugatti at $904,237.50 at the time of the loss.
The document references salvage bids from $100 to $301,000 and a repair estimate but doesn’t list a price on the repair.
Magistrate Judge John R. Froeschner has yet to set a trial date.
The insurance company asked the court to find no coverage is afforded by the policy, because it claims House didn’t use the car as a collector vehicle, which was insured for exhibitions, parades and limited pleasure use.
House drove the Bugatti more than 1,200 miles in the three weeks from when he bought it until the incident, the lawsuit claims.
http://galvestondailynews.com/story/276126
‘Informant’ Comes Forward
The insurance company also claims an unnamed confidential informant reported additional facts indicating fraud. The lawsuit claims the informant stated House offered to pay him to steal the car and burn it so that House could claim the insurance money.
After the Bugatti wreck, House offered to pay the informant part of the insurance money in exchange for his silence during the investigation, the lawsuit states.
The case has 70 federal court filings, including a list of expert witnesses. The insurer retained Rimkus Consulting Group of Houston to reconstruct the incident. It found the car had been traveling at 51 mph in the seconds before the wreck and that 2 seconds elapsed from the time the car first left the shoulder until entering the water.
The report claims House should have had sufficient time to respond to the car veering off road.
“Within the accident reconstruction community, it is expected that the majority of drivers can respond to an emergency situation in 1.5 seconds,” the report states.
Men tend to respond faster than women and reaction time tends to increase above age 35, according to the report. House was 34 at the time of the crash.
No Water In Air Intakes
The Bugatti had a waterline 29 inches off the ground. There was damage to the undercarriage, and many of the visible connections were corroded. The alarm system engaged, some of the lights turned on, and it appeared multiple electronic control systems were damaged.
Although it appeared water entered the exhaust system, the car’s air intakes were well above the water line, and the report found no visible evidence of water in the intakes or engine contamination.
Another report from Auto Damage Appraisers of Houston valued the Bugatti at $904,237.50 at the time of the loss.
The document references salvage bids from $100 to $301,000 and a repair estimate but doesn’t list a price on the repair.
Magistrate Judge John R. Froeschner has yet to set a trial date.
The insurance company asked the court to find no coverage is afforded by the policy, because it claims House didn’t use the car as a collector vehicle, which was insured for exhibitions, parades and limited pleasure use.
House drove the Bugatti more than 1,200 miles in the three weeks from when he bought it until the incident, the lawsuit claims.