Philadelphia official, auto body shop charged in $400k fraud

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Wednesday, March 9, 2016

PHILADELPHIA -- Prosecutors in Philadelphia say a city fleet supervisor steered work to a South Philadelphia auto body shop that overcharged the city $400,000 for phony or inflated bills.

American Collision is also at the heart of a pending case that accuses it of using deer carcasses and other props to stage accidents and collect on insurance claims.

Owner Ronald Galati Sr. is already serving over 20 years in prison for attempting a failed hit on his daughter's boyfriend.

Prosecutors say Galati and his son, Ronald Galati Jr., did not have the welding equipment needed to get the city contract.

He says a city fleet supervisor nonetheless qualified them for the work and told them how much to bid to win the contract.

Both cases are expected to go to trial in September.