Two Carolina Fraud Arrests Expose Auto Glass and Towing Schemes That Cost Insurers Thousands

While honest drivers pay rising premiums every renewal cycle, two businessmen in the Carolinas were allegedly billing insurers for services that were never performed at all.

Insurance Journal reported on August 3, 2026 that separate auto insurance fraud charges were filed against a Myrtle Beach auto glass operator and a Charlotte towing company manager. The two cases highlight how auto insurance fraud bleeds into the most routine claim categories, windshield replacements and roadside tows, costing insurers and, ultimately, policyholders real money. The Save Max Quote Index, drawn from 3.3 million+ real quote requests, consistently shows that drivers in states with elevated fraud activity face steeper premiums compared to low-fraud neighboring markets, a pattern that makes arrests like these directly relevant to your wallet.

Two States, Two Schemes: What Happened

The two cases unfolded independently but share a common thread: inflated or entirely fabricated claims submitted to private insurers.

In South Carolina, state authorities charged John Angulo, 46, the owner of Safe Pro Auto Glass in Myrtle Beach, with submitting 13 false claims to Allstate Insurance. According to the South Carolina Law Enforcement Division, as reported by Insurance Journal, those claims totaled more than $38,000 and were submitted across 2024 and 2025. Angulo was booked into jail in Horry County.

Across the border in North Carolina, Antonio Lorenzo Covington, 32, manager of Tow Godz towing service in Charlotte, was booked into jail on July 21. Covington allegedly submitted a single bill of $4,250 to Peak Property and Casualty Insurance for a tow job that included charges authorities say were entirely fabricated.

Two states. Two defendants. One shared playbook: bill the insurer for work that was never done or equipment that was never used.

Inside the Fake Claims: How Each Scheme Worked

The mechanics of each fraud were straightforward, which is part of what makes them so persistent.

Angulo's scheme allegedly involved submitting claims to Allstate for auto glass replacements that simply never happened. No windshields were swapped. No repairs were made. According to the South Carolina Law Enforcement Division, the 13 claims spanned a period from 2024 through 2025, adding up to more than $38,000 billed for invisible work.

Covington's approach was different but equally brazen. Rather than inventing a service from scratch, he allegedly padded a real tow job with phantom fees. The $4,250 bill submitted to Peak Property and Casualty Insurance included a $500 "clean up" fee and a $750 fee for "special equipment." Neither service was apparently rendered.

"Surveillance video and witnesses indicated that no special equipment was used and no clean up was done in the tow job," the North Carolina Department of Insurance said.

That is $1,250 in charges tacked onto a single bill for work that surveillance footage and eyewitnesses confirm never occurred.

Phantom Fees and Paper Trails: How Investigators Caught On

Covington's case broke open through a combination of old-fashioned surveillance and witness accounts. The North Carolina Department of Insurance stated that video footage directly contradicted the charges on the bill. Witnesses on the scene also confirmed that no cleanup was performed and no special equipment was deployed during the tow.

The most damaging detail came when investigators questioned Covington directly.

When authorities questioned Antonio Lorenzo Covington, 32, he could not explain the extra charges, the Charlotte Observer reported.

That inability to account for $1,250 in line-item fees proved critical. In Angulo's case, the South Carolina Law Enforcement Division identified the pattern of 13 claims submitted to a single insurer over roughly a year and a half, a volume and consistency that claim pattern analysis is specifically designed to flag. Billing Allstate 13 times for glass replacements that left no physical trace is the kind of anomaly that triggers internal insurer review.

Charges, Costs, and Consequences by the Numbers

Here is a direct side-by-side comparison of both fraud cases based on information reported by Insurance Journal and the relevant state agencies:

The dollar amounts differ significantly, but both cases carry criminal fraud charges and the full weight of their respective state insurance enforcement agencies.

Why Auto Glass and Towing Are Prime Fraud Targets

Auto glass and towing occupy a uniquely vulnerable corner of the claims ecosystem.

Both services typically involve low-documentation transactions. A tow happens quickly, often at the roadside with no insurer representative present. A glass replacement is completed at a shop or a driveway with no third-party inspector watching. That absence of real-time oversight creates space for bad actors to bill for services that were never delivered or to inflate costs with fees no one will immediately question.

The $500 "clean up" and $750 "special equipment" charges in the Covington case are textbook examples of phantom-fee padding. These line items sound plausible on an invoice, but they are difficult for a claims processor reviewing paperwork to disprove without video evidence or a witness.

For South Carolina drivers and North Carolina drivers, this matters beyond the headline. When fraudulent claims inflate an insurer's loss ratio in a given region, rate increases often follow for everyone in that market. The SMQI tracks exactly this kind of geographic premium pressure across millions of quote requests.

Glass and towing fraud are also attractive because the dollar amounts per claim can stay below thresholds that trigger automatic deep review, though Angulo's 13-claim pattern apparently exceeded that ceiling.

What this means for you

Review every line item on any towing invoice before your insurer pays it, and ask your claims adjuster to flag any glass replacement that lacks a verifiable work order or installer confirmation. If you spot charges for equipment or services you did not see used, report them directly to your state's Department of Insurance. Fraud-driven premium increases hit every policyholder in your market, so reporting suspected auto insurance fraud is not just civic duty, it protects your own rate. Virginia drivers and Georgia drivers in neighboring markets can check state-specific rate trends through their respective DOI portals as well.

FAQ

How much did the two Carolina fraud schemes cost insurers combined?

Based on figures reported by Insurance Journal, the South Carolina glass fraud totaled more than $38,000 across 13 claims submitted to Allstate, while the North Carolina towing fraud involved a single bill of $4,250 submitted to Peak Property and Casualty Insurance. Combined, the alleged fraudulent billings exceeded $42,000.

What specific charges made the North Carolina towing bill suspicious?

The $4,250 bill submitted by Antonio Lorenzo Covington included a $500 "clean up" fee and a $750 "special equipment" fee. Surveillance footage and witness accounts confirmed that neither service was actually performed during the tow job, according to the North Carolina Department of Insurance.

Who is prosecuting the South Carolina auto glass fraud case?

The case against John Angulo, owner of Safe Pro Auto Glass in Myrtle Beach, will be prosecuted by the South Carolina Department of Insurance, according to reporting by Insurance Journal. Angulo was booked into Horry County jail following the charges filed by the South Carolina Law Enforcement Division.

How does auto insurance fraud affect my premium?

When insurers pay out fraudulent claims, those losses are factored into actuarial models that set regional rates. The Save Max Quote Index, which draws on 3.3 million+ real quote requests, shows that drivers in higher-fraud markets consistently receive higher quoted premiums than comparable drivers in lower-fraud regions, meaning every undetected fraudulent claim has a real cost to honest policyholders.

What should I do if I suspect auto glass or towing fraud on my own claim?

Contact your insurer's fraud hotline immediately and file a report with your state's Department of Insurance. In North Carolina, that is the NCDOI; in South Carolina, the SC Department of Insurance handles prosecution of these cases directly. Preserving any photos, receipts, or witness contact information from the service call will strengthen your report.

What Happens Next in Both Cases

Angulo's case in South Carolina moves to prosecution by the South Carolina Department of Insurance, which is both the regulatory body and the prosecuting authority in this matter. The 13 counts tied to claims submitted in 2024 and 2025 to Allstate represent a sustained billing pattern, a factor that typically weighs in sentencing considerations for insurance fraud charges at the state level.

In North Carolina, Covington was booked into jail on July 21 following the charges brought by the North Carolina Department of Insurance. His case is tied to a single $4,250 bill, but the presence of surveillance footage contradicting his invoice and his inability to explain the phantom fees on record create a documented evidentiary record that prosecutors can work from directly.

Both defendants face the full range of consequences available under their respective states' insurance fraud statutes, which typically include fines, restitution to the defrauded insurers, and potential incarceration. The outcome of each case will depend on how state prosecutors proceed and whether any plea arrangements are negotiated.

About Taleah McGuire

Taleah McGuire is a Regional Analyst at Save Max Auto with 11+ years of insurance experience including senior roles at Kentucky Farm Bureau. She covers regulatory news, state-specific reform legislation, and traditional carrier coverage. Read more from Taleah McGuire →

Edited by Cassidy Richey.

Methodology

This article is grounded in the source linked above. Save Max Auto data points referenced here are drawn from the Save Max Quote Index (SMQI), a proprietary instrument reflecting 3,364,317 real consumer quote requests submitted to savemaxauto.com. State and carrier rankings reflect the lifetime dataset; year-over-year shifts reflect a rolling 12-month window. The index is refreshed monthly. External authority figures referenced (NAIC, NHTSA, state regulators) reflect the most recent public data releases available at time of writing.

Sources

• Primary source: Insurance Journal, "'Tow Godz' and Auto Glass Businessmen Charged in Carolina Fraud Schemes"