MOBILE, Ala. (WALA) -It’s been over three years since SOS towing company owner Gary Smith Jr. was arrested and charged with insurance fraud. He and his father Gary Smith Sr were accused of overcharging insurance companies. Instead of going to trial today, Smith accepted a settlement agreement to drop the charges. Smith’s attorney Chase Dearman says it’s been a long time coming.

“Since they were originally arrested Gary’s father passed away which was very difficult for them,” said Chase Dearman. “They had their tow trucks seized so they essentially had no business at the time.”

This all started in 2019 when Smith and his father were accused of charging insurance companies towing and storage fees that were more than the maximum allowed by city ordinances.

“Gary maintains as he has this entire time that he did nothing wrong,” said Dearman. “He charged the rates that Sergeant Goodwin at the impound yard told him to charge. He handed him a memorandum that says these are the charges to charge and he did that.”

Dearman says the state offered Smith a deal to drop criminal charges, but possibly pay restitution.

“It’ll be up to a judge to decide if there were any overages however whether or not there were any overages it was not a criminal matter. There was never an intent to deceive,” said Dearman.

We reached out to district attorney Keith Blackwood who sent us this statement that says:

“This case was resolved today in a way to make the defendant pay restitution for his wrongdoing related to filing inflated insurgence claims through his towing business. The decision on whether or both the defendant will continue to be on the towing list lies with MPD.”

Smith’s family also sent us a statement that says:

“Today was finally the day. After years of proclaiming our innocence and fighting to clear our name. It is done. The DA has dropped all charges. While completely overjoyed, the victory is bittersweet. With intent to completely vindicate ourselves and leave nothing to doubt. We have agreed to an accounting meeting to clarify rates that had been charged. Something that could have easily been done from the beginning instead of suffering through this malicious and public persecution initiated by a scorn Assistant Chief.”

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