SAN FRANCISCO, California — Jose Vicente Badillo and Jessica Elizabeth Najarro appeared in federal court today to face charges of mail fraud, wire fraud, and money laundering related to a scheme to defraud an auto insurance company.

According to an indictment returned by a federal grand jury on July 9, 2024, Badillo, 28, and Najarro, 30, both of San Francisco, conspired to defraud an insurance company by submitting a fraudulent insurance claim on a wrecked car that Badillo purchased in June 2019. The indictment alleges that the car was undrivable, with severe front-end damage and a non-functioning engine at the time of purchase. Despite this, Najarro obtained an insurance policy on the car and later took title to it before falsely reporting a single-car accident in San Francisco in July 2019.

The indictment further alleges that Najarro made materially false statements to an insurance representative in another state, leading the insurance company to process and approve her claim, resulting in an insurance reimbursement check for $34,037.48. The full amount of the check was allegedly deposited into a Wells Fargo Bank account controlled by Badillo.

At the time of the offenses, Badillo owned and/or controlled two companies engaged in the business of towing vehicles: Jose’s Towing, LLC, and Auto Towing, LLC, both operating out of San Francisco.

Both defendants are charged with one count each of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, and money laundering. They were arrested in San Francisco on August 8, 2024, and released on a $50,000 bond at their initial appearances later that day. Their next court appearance is scheduled for August 12, 2024, at 10:30 a.m., before the Hon. Lisa J. Cisneros for arraignment and identification of counsel.

An indictment merely alleges that crimes have been committed, and both defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Badillo and Najarro each face a maximum sentence of 20 years in prison and a fine of $250,000 or twice the gross gain or loss, whichever is greater, plus restitution, on each of the counts of mail fraud, wire fraud, and conspiracy. They also face a maximum sentence of 10 years in prison and a fine of $250,000 or twice the amount of criminally derived property involved in the transaction, plus restitution, on the money laundering charge. The court may also order an additional term of supervised release following any prison term.