Burr Ridge Couple, Lawyer, Charged in Insurance Fraud Scheme

Burr Ridge Couple, Lawyer, Charged In Insurance Fraud Scheme

Five people, including a Burr Ridge couple and a north suburban lawyer, have been charged in a multi-million dollar insurance fraud scheme that targeted fire victims throughout Chicago, and suburban Cook and DuPage counties over the last several years, law enforcement officials announced today.

Tad Christensen, 40, and his wife Donna Christensen, 37, both of 7719 Drew Ave., Burr Ridge, have been charged in the wide-ranging scheme, along with Eric Ferleger, 53, of 516 Somerset Lane, Northfield, a lawyer, insurance adjuster and a partner in the scheme. Tad Christensen and Ferleger both face Class X felony charges that carry a possible penalty of up to 30 years in prison.

The arrests culminate a six-month investigation dubbed "Operation Phoenix," conducted by the Cook County Sheriff's Police, Cook County State's Attorney's Office, the DuPage County State's Attorney's Office, the Westmont Police, the U.S. Postal Inspectors and the National Insurance Crime Bureau.

Ferleger was arrested Wednesday morning at his home. The Christensens were arrested the same day within minutes of each other near the I-55 entrance ramp and County Line Road.

Also Wednesday morning, authorities executed search warrants at five locations: the Christensen home at 7719 Drew, Burr Ridge; the law firm of Ferleger & Associates, 29 S. LaSalle St., Chicago; Action Fire Restoration offices at 120 Burlington Ave., LaGrange; board-up company offices owned by the Christensens at 8901 Odell Ave., Bridgeview; and the State Road Currency Exchange, 6322 W. 87th St., Burbank, where police believe large insurance checks were cashed by the Christensens and their employees, avoiding proper reporting procedures.

The Christensens own multiple businesses that provide board-up and restoration services after home fires. The main business, until recently, was called "Action Fire Restoration." Action Fire is on numerous Chicago and south suburban village rotating call-out lists for board-ups after a fire. Once at the fire location, Tad Christensen or another employee pressures the homeowner to sign a legal agreement for Action Fire to restore the home, promising upgrades to the home and completion of work within 90 days.

The investigation revealed that in most instances Action Fire did not complete the work it was contracted to perform. Additionally, the Christensens and other Action Fire employees submitted false invoices to insurance companies and forged checks for deposit.

As part of the scheme, lawyer Eric Ferleger, working on behalf of Action Fire, on several occasions placed a lien on the property for the amount of the insurance check just cashed. Homeowners are left with a legal mess as well as incomplete repairs and an uninhabitable home.

"These offenders preyed on their victims when they were at their most vulnerable - suffering the traumatic loss of their home and other valuables," Sheriff Michael F. Sheahan said. "We hope these arrests send a message to those who attempt to profit from the misfortunes of others - we will catch you and use all our resources to punish you accordingly."

"The leaders of this fraudulent scheme face very serious consequences-up to 30 years in prison-for their ripoffs," State's Attorney Richard A. Devine said. "This investigation should warn similarly minded con artists who prey on the vulnerable that we will pursue them and prosecute them to the fullest extent of the law."

"These defendants are alleged to have financially exploited people whose homes and personal belongings were destroyed by fire-in many instances by acts of arson," said DuPage County State's Attorney Joseph Birkett. "To prey on such tragedies is despicable, and we will use every resource to seek the appropriate punitive and financial consequences against these defendants."

Through this fraud investigation, police have identified more than 20 victims in Cook County and DuPage County. The Cook County victims include:

* A March 2003 fire extensively damaged an Oak Forest condo complex in which Christensen claimed the owners would be back living in the complex within three months. Six months later the work was still incomplete, substandard and done with inferior supplies. Action Fire officials illegally signed checks and deposited nearly $240,000 worth of insurance money for repairs that were never done. Action Fire then sent the condo association a letter of completion stating the job was finished, and demanded an additional $19,000 it claimed it was owed. When the homeowners refused, Action Fire filed a lawsuit against the association.

* A January 2004 fire severely damaged the second floor and caused major water damage to the first floor of woman's South Side home. While standing in front of her burning home, the woman was approached by two men from Action Fire who attempted to get her to sign with their company. She refused, and for two days the men staked out the area, stopping relatives as they came to the neighbor's house, where she was staying. The men even offered her son drugs to get her to sign the agreement. Eventually, she reluctantly agreed. When she inspected the work done by Action Fire, she found new drywall placed over existing closets and doorways so they could not be used, toilets and sinks removed but not replaced, electrical outlets unfinished and items missing from the home including an antique door. Six months later, Action Fire sent the homeowner a letter of completion, but she refused to sign it. Two months later, Action Fire filed a lawsuit against her for $135,000.

* A South Side woman signed a contract with Action Fire following her February 2004 home fire after employees promised her numerous upgrades among her replacements. Work didn't begin at the house until nearly seven months later, was inferior and included drywall that cracked and peeled shortly after installation. Action Fire again forged one of the homeowner's insurance checks for nearly $46,000. When she received the final insurance check and refused to sign it, she began receiving numerous threatening phone calls from both Donna and Tad Christensen. She later received a letter from Eric Ferleger stating a mechanics lien was being placed on her house unless she signed the check and continued receiving frequent calls from Action Fire threatening her with foreclosure and eviction from her property.

During the search warrants executed Wednesday, authorities recovered a cache of more than three dozen weapons from the Christensens' luxury home. The home, valued at more than $1 million, and three cars owned by the couple are being evaluated for seizure under a new Illinois law. The Christensens do not hold a mortgage on the house and own it outright.

Police seized loads of business records from the remaining four locations for further review by law enforcement authorities.

Authorities in Cook County are also investigating claims by four legitimate companies that served as subcontractors of Action Fire. All told police that they were never paid for the work they performed for Action Fire. Those claims range from $630 to nearly $37,000. On at least three occasions, Action Fire also falsified bills from these subcontractors to insurance companies for additional work that was never done in an attempt to receive further reimbursement.

Also arrested on Wednesday was Ronald Nagler, 63, of 15502 S. LeClaire Ave., Oak Forest. Nagler is the owner of the Burbank currency exchange. He is charged with money laundering and structuring. One of Nagler's employees, Mary Ann Biske, 64, of 6214 W. 83rd Pl., Burbank, was also charged with money laundering and structuring.

Today in Central Bond Court, Judge Kevin Sheehan set bond at $1 million for Tad Christensen,
$350,000 for Donna Christensen, $500,000 for Nagler, and $175,000 for Biske. All four are due in court again on Oct. 14. Ferleger's bond was set at $250,000 today by Judge Laura Sullivan and his next court date is Oct. 13.

Prosecutors will seek to seize the assets of the Christensens under a new law, proposed by Devine, that was enacted this past summer, the Criminal Money Laundering Act.

Authorities ask that other victims of Action Fire Restoration report their problems to the National Insurance Crime Bureau at 1-800-835-6422.

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