Following the June storm that devastated so many vehicles, it was only a matter of time before scammers would try and take advantage.
Now Lawton police are investigating and are urging you to say “Hail No”” to a mobile business purporting to be Hail-Yeah dentless paint repair in Lawton.
Lawton police issued a public service announcement regarding the scam and is asking victims to contact the department to file a report.
Known as a “rolling fraud,” according to a paper written by Dr. Mark Lurie, CEO of Threat & Fraud Assessment, they are set up for the purpose of creating a legitimate-looking business that will last about 45 days or so, and then disappear.
The scam is that they’ll offer to do the repair cheaper than a regular body shop. The pitch is they’ll tell you the insurance company will give you a check in the amount necessary to have it done at a known business and they’ll do the work for a fraction of the cost.
After signing an agreement to have the repairs done, they will take the vehicle and keep it, generally until the checks clear before packing up and leaving town. The vehicle will be left with others and are often missing their keys and, sometimes, various components.
A Lawton man spoke with The Constitution about his encounter with the bogus Hail-Yeah that left him filing fraud complaints after being grifted of around $17,000 with no repairs made. Embarrassed from the whole ordeal, “Bill” asked not to be identified.
Bill said a salesman came to his home July 11 claiming to be from Hail-Yeah. After signing the contract, the salesman and another man came and picked up his car and truck and took them to their warehouse where they said they would do the repairs.
The truck was returned without being repaired but said they could begin work on the car, Bill said. Unfortunately, he said, he’d left the unsigned insurance checks above the sun visor. He’d received a check for $10,954.15 damage to the car and $6,718.58 to the truck.
After not hearing from them for four or five days, Bill said he called the company and left a message. Later that day, the salesman contacted him and told him the work was halfway finished. It wasn’t long after that that Bill received a call from the actual company Hail-Yeah! Dentless Paint Repair, based in Texas, said they’re not operating in Oklahoma.
“I said whoa, wait a minute,” he said.
“I checked with State Farm disaster center and was told both checks had been cashed,” Bill said. Bill said he saw the checks had been signed but it wasn’t his signature.
Bill got back in touch with the salesman and told him the checks had been cashed. He claimed he didn’t know who cashed them. He asked for his car back and was told where it was and went to get it.
“They opened up the door and there were 12 or 13 cars in there. I said, ‘Where’s my car?’ It was all the way in the back of the building with no work done on it.”
Bill said he wanted his car back and money refunded. They brought his car back and was assured the money would be mailed back to State Farm (his insurance agency). State Farm never got the checks back, he said.
Bill learned the checks were deposited with Navy Federal Credit Union; he too has an account there. He filed a fraud report with them and State Farm. Then he filed his police report.
Lawton Police Detective David Folkert told Bill the salesman had been questioned and the operation was shut down. He was told the salesman went back to Texas because he was fooled into thinking he would be paid for getting customers. He never got paid, he said.
“Even if he was just a front man for this guy, who forged the signature on the checks?” Bill asked. “I haven’t had that question answered to me yet.”
Bill was told there’s an arrest warrant for the fake company’s owner, Frank Palmer.
“He’s supposed to be charged with doing the same thing in Iowa, I guess,” he said. “They know who he is, he’s out of the Dallas area.”
After talking with the owner of Hail Yeah! Paintless Dent Repair, Bill learned the company has been receiving complaints about the fraudulent business for a couple of years for doing the same thing.
Accepting the blame for getting caught up in the scam, Bill offered advice to others: be diligent in knowing who you do business with.
“I just got caught up and it was my fault, I left the checks in the vehicle and they found the checks,” he said. “I should have known better. You know how it is when you’re trying to get things done. I was gullible.”
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