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State: Shop sells fake auto insurance

 by Detroit News Online
 Oct 03,2006

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Roseville business issued 63 certificates without a license; owner says it was all a mistake.

ROSEVILLE -- Motorists could unknowingly be driving around with bogus car insurance, if they recently purchased no-fault certificates from a Roseville auto shop.

The Michigan Office of Financial and Insurance Services has issued a cease-and-desist order against David Pearson, owner of the Pearson Service Center on Gratiot, for selling Michigan no-fault auto insurance certificates without a license.

Pearson issued 63 phony insurance certificates between May 24 and Sept. 20, and there could be more, said Kathy Fagan, the state agency's spokeswoman.

"We want to get the word out to anyone who may have insurance from that shop," Fagan said, adding that the state already has contacted most of the 63 purchasers of the bogus coverage.

The state Attorney General's Office investigated the charges and has forwarded data about the case to the Roseville Police Department's detective bureau.

Police may ask for charges to be brought against Pearson, Deputy Chief Anthony Cona said.

Pearson said Monday the case was a misunderstanding, and that he is working with OFIS to properly obtain a license.

____________________________________________

George Hunter and Christina Stolarz / The Detroit News

© Copyright 2006 The Detroit News. All rights reserved.



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