LOS ANGELES — A former reserve officer with the Los Angeles Police Department and his brother are facing felony charges after allegedly staging a luxury car accident to commit insurance fraud.
Eric Benjamin Halem, 37, and his brother Jacob Halem, 32, were charged following a California Department of Insurance (CDI) investigation into a false claim involving a 2020 Bentley Continental GT. The car, valued at over $200,000, was part of Eric Halem’s rental fleet offered through his company, Drive LA, which rents high-end vehicles for up to $875 per day.
According to investigators, the Bentley was damaged on January 2, 2023, during a rental period. The actual driver was a customer — not Jacob Halem, as later claimed in a fraudulent insurance report.
After the renter’s insurance provider denied a claim, Eric Halem allegedly filed a new claim under his personal policy, asserting that Jacob had been driving during a single-vehicle crash on January 5. To support the claim, the Halem brothers reportedly staged photos of the damaged Bentley on a tow truck at the alleged crash site.
Jacob Halem also submitted a false statement to the insurance investigator, CDI said.
The deception unraveled when adjusters compared the Halems’ photos with body-camera footage from Los Angeles County Sheriff’s deputies, who had responded to the actual crash involving the renter on January 2. The damage shown in both cases matched precisely.
Officials say the fraudulent claim could have cost the insurer over $229,000.
“Insurance fraud impacts all Californians by driving up costs for consumers and businesses,” CDI said in a statement.
Eric Halem was arrested on March 27 and released on $50,000 bond. LAPD confirmed that he was removed from the department and had his equipment confiscated that same day. Jacob Halem’s current custody status is unknown, though both have been arraigned, according to CDI.
