September 21, 1997
 
 

Oswego Mutual Insurance Company
4371 Crighton Lane
Oswego, IL  60543

ATTENTION:  Helen Watson

Your Claim #: 714-465859-37AA
Insured: Raymond Vecchio
Claimant: Xiong Imports
Date of Loss: September 14, 1997
Our File #: 48-87392

FIRST REPORT

ASSIGNMENT:

We wish to acknowledge receipt of this assignment received in our office on September 14, 1997.  We were instructed to interview the insured operator.  We were also to obtain the statements of any witnesses and claimants regarding this accident and to determine the scope of damage.

DATE, TIME and PLACE:

This accident occurred on September 14, 1997.  The location is described as South Lakeshore Drive, Chicago, Illinois, 60616.  This location is described as a commercial avenue which dead-ends at the shore of Lake Michigan.  The area is surrounded by shipping/receiving operations and public travel is minimal.

DESCRIPTION OF ACCIDENT:

Allegedly, the insured vehicle caught fire and was driven into Lake Michigan in an attempt to minimize the danger to the surrounding area/inhabitants.  While en route to the waterfront, the insured vehicle struck a large shipping container of plastic toys owned by the claimant company.

INSURED OPERATOR:

The insured operator is identified as Raymond Vecchio.  His home address is 2926 North Octavia Avenue, Chicago, Illinois 60607 and his home telephone number is 708-555-8599.  He is single and is employed as a detective with the Chicago Police Department.  We spoke to the insured operator at his place of employment.

Detective Vecchio stated that he and his passenger were conducting an investigation regarding a 'performance arsonist' that had allegedly set fire to the insured's house (see homeowner's claim number 714-465802-37HO) as well as the insured passenger's apartment building prior to this incident.  During the course of their investigation it was determined that the insured vehicle had been the arsonist's next target and it was decided to drive the affected vehicle toward the waterfront.  Vecchio estimates that the vehicle was in flames for approximately two minutes prior to reaching Lake Michigan.  He states that no other vehicles were involved in this accident, and that the only damage that he is aware of is to his vehicle, and the property owned by Xiong Imports.

INSURED PASSENGER:

The insured passenger is identified as Constable Benton Fraser, of the Royal Canadian Mounted Police.  His current residence is unknown at this time due to events discussed earlier in this report.  He can be reached at the Canadian Consulate located in Chicago, Illinois 312-226-2321, however.  He is single.

We spoke to Constable Fraser at the Canadian Consulate after verifying our identity and explaining our purpose, in detail, to the Consulate receptionist - repeatedly.  According to the passenger, he first came to Chicago on the trail of the killers of his father and for reasons that don't need exploring at this juncture, he has remained attached as a liaison with the Canadian Consulate.  Constable Fraser then explained at length that he generally concurs with the statement of the insured operator.  He added that their path during the incident also included a short detour through the property owned by WishyWashy Car Wash in an attempt to douse the vehicle's flames.  Constable Fraser also requested that it be noted in our investigation that a third occupant, a wolf named Diefenbaker, was also present during the accident.

PHYSICAL DAMAGE:

At the time of the accident the insured was operating a 1971 Buick Riviera with vehicle identification number CCL447J127586 and Illinois license plate number LCV705.  Damage is to the entire vehicle as it sustained heavy fire, smoke and water damage.  In addition, the hood of the vehicle was missing from the vehicle when it was removed from the water.  This vehicle is currently being held in the Chicago Police Department impound yard.  It should be considered a total loss.  The local market value for this vehicle is $5,253.00.

INJURIES:

While neither the insured operator nor the insured passenger claim any injuries sustained in this accident it should be noted that both occupants were examined at the scene by medical personnel.  In addition to being submerged in the cold water of the lake, the insured operator sustained a soft-tissue injury to his right middle abdomen.  We requested further information regarding this injury but the insured assured us the injury was unrelated and in fact occurred following the vehicle accident.  Constable Fraser stated that the wolf was uninjured, as well.

CLAIMANTS:

Xiong Imports:

The claimant company is identified as Xiong Imports, 1422 N. Hooker Street, Chicago Illinois 60622 and their phone number is 224-555-3825.  We met with Marvin Xiong, the owner of the claimant company at the scene of the accident and obtained his statement.

Mr. Xiong stated that he first became aware of the incident when he received a telephone call from the shipper.  He traveled to the scene and found the insured vehicle occupants to be extricating themselves from Lake Michigan.  He states that his property had been destroyed in the accident.  We requested further information regarding conversations between the insured and himself following the incident, but Mr. Xiong stated that he was not allowed to speak in regard to those issues and that we would need to speak to Chicago Police Department Lieutenant Welsh regarding that information.  Lieutenant Welsh has not returned our calls.

WishyWashy Car Wash:

According to Mike Ard, manager of WishyWashy, there was no damage to his property.

Unknown Claimant:

It has also been suggested that the hood that is currently missing from the insured vehicle damaged a parked car along the roadway.  While we have not been able to identify the owner of this vehicle, the vehicle has been described as a late 1960's model Pontiac, black or dark blue in color with partial Illinois license plate number RC* 13*.  Should the owner of this vehicle contact our office we will advise.

PROPERTY DAMAGE:

The property damaged, reportedly owned by Xiong Imports, is described as one large wooden crate (10' x 8' x 8') containing 1,000 small yellow rubber ducks.  During our investigation we found the crate to be destroyed and approximately one half of the articles contained inside strewn along the dock on which the crate had been positioned.   The other half of the items were found floating atop Lake Michigan along the shoreline.  Upon our visit to Constable Fraser's place of employment we also spotted one of the items in the mouth of insured passenger Diefenbaker.  According to Xiong Imports, the value of these items is listed as $17,088.37.  We questioned the high value of these items, and documentation to support Xiong Imports' claim is enclosed.  According to the importer, the ducks in question were all signed by - apparently, because I have never heard of him - a Canadian celebrity.

WITNESSES:

We canvassed the area surrounding the accident location and found one witness willing to speak with us.  He is identified as Hector Bast.  Mr. Bast would not volunteer his address and telephone number.  Mr. Bast states that he first saw the insured vehicle as it traveled down Lakeshore Drive toward the waterfront.  He states that when he saw the vehicle it was already in flames and he estimates the vehicle's speed at approximately 20 miles per hour.  He also states that he saw the insured vehicle stop at an intersection for approximately 30 seconds, while in flames, two blocks from the lake.  Mr. Bast, a photojournalist, took photographs of the vehicle as it traveled down the roadway and generously offered copies of those photos for your review.  Please find them enclosed with this report.

OFFICIAL RECORDS:

The Chicago Police Department is investigating this accident and their report is not yet available. Once it has been released to the public we will obtain a copy and forward it to your office for your review.

COMMENTS:

In reviewing the insured's file we note numerous other occasions involving both the vehicle in question (1971 Buick Riviera) and the insured himself.  Due to the nature of the insured's employment (i.e. Police Officer), some activity is assumed.  Unfortunately, in the past two years we cite seven claims in regard to vehicles (see claim numbers 714-401222-37AA, 714-402187-37AA, 714-402984-37AA, 714-437899-37AA, 714-438010-37AA, 714-459912-37AA and 714-459913-37AA), as well as three homeowner's claims.  We suggest a formal review of the insured's policy be conducted at Underwriting's earliest convenience.

Additionally, this adjuster has worked claims for Raymond Vecchio in the past - and unless I'm mistaken, this claim should be investigated for fraud, because the man I interviewed today is not the Ray Vecchio I remember.  Mannerisms, voice patterns, and physical appearance seem to have been altered since prior contact.  Further investigation is surely warranted.

DRAFT REQUEST:

Should you accept liability for this claim, please issue the following:

Your draft in the amount of $5,253.00 made payable to Raymond Vecchio.  Please forward this draft directly to the insured at the above noted address.

Your draft in the amount of $17,088.37 made payable to Xiong Imports.  Please forward this draft directly to the claimant at the above noted address.

FUTURE ACTIVITY:

As this concludes the tasks assigned of us we will be closing our file at this time.  Thank you for this assignment and we look forward to working with you again in the future.

Terrapin Insurance Adjusters
 
 

Penny Oaks
Claims Adjuster

PO/mt

Enclosures: Photographs of insured vehicle, support documentation
 

Photo #1   Date Taken:  September 14, 1997   Time: 4:35 p.m.   Taken By:  Hector Bast

Witness account of insured vehicle as it traveled toward Lake Michigan.  (Note missing hood)
 

Photo #2   Date Taken:  September 14, 1997   Time: 4:35 p.m.   Taken By:  Hector Bast

Witness account of insured vehicle as it traveled toward Lake Michigan.  (Surrounding vehicles not damaged)
 

Photo #3   Date Taken:  September 19, 1997   Time:  10:30 a.m.   Taken By:  Penny Oaks

Example of claimant's damaged merchandise - duck signed by P. Gross.
 
 

Invoice to:

 Xiong Imports
 1422 N. Hooker Street
 Chicago, IL  60622

 Attention:  Marvin Xiong
 

INVOICE NUMBER: N26746                 REFERENCE NUMBER: 2733314
DATE: 9/7/1997                                     CUSTOMER REFERENCE:
 

ITEM DESCRIPTION:

1,000 Yellow Rubber Ducks, size small.
 (promotional items, signed by P. Gross)
 

SHIPPING UNITS:

1
 

ITEM PRICE PER UNIT:     $16.50  US

EXTENDED PRICE:     $16,500.00  US

SHIPPING/HANDLING:     $588.37  US

TOTAL AMOUNT DUE:     $17,088.37  US