BUTTAFUOCO CHARGED WITH INSURANCE FRAUD.

Byline: Phillip W. Browne Staff Writer

CHATSWORTH - Joey Buttafuoco - the former New York mechanic at the center of the ``Long Island Lolita'' scandal - was arrested Wednesday and charged with insurance fraud for allegedly making phony repair estimates at his Chatsworth auto body shop.

Buttafuoco was being held on $50,000 bail on three counts of insurance fraud and one count of grand theft. The 47-year-old owner of California Collision of Chatsworth is accused of telling undercover investigators in September how to file phony insurance claims for undamaged cars.

Buttafuoco gained national notoriety as a result of the ``Long Island Lolita'' case, in which his 16-year-old lover Amy Fisher shot his wife in the head at the couple's front door. Three made-for-television movies were aired between 1992 and 1993 detailing the lurid affair and resulting scandal.

Prosecutors in the insurance case said they conducted a four-month investigation, which resulted in the arrests of Buttafuoco and seven others from around Los Angeles County.

``We want to slam the brakes on insurance fraud in California that costs consumers and companies millions of dollars annually,'' District Attorney Steve Cooley said in a statement.

Buttafuoco's attorney, Leon F. Bennett, did not immediately return phone calls.

Investigators armed with search warrants removed computers and documents from Buttafuoco's auto shop at 9811 Deering Ave., which he co-owns with his son, Paul, and from his Depression-era ranch in the 22000 block of Chatsworth Street.

Paul Buttafuoco was not arrested and has no involvement in the case, officials said.

In a separate administrative action, the state Bureau of Automotive Repair filed a motion to suspend or revoke the license for California Collision, alleging the shop charged customers more than $12,000 for parts and service on seven nonexistent vehicles, spokesman Jerry Froehlich said.

``These are very serious violations,'' Froehlich said. ``And we are taking this very seriously.''

At the row of auto repair shops along Deering Avenue, fellow business owners and shop workers were shocked at Buttafuoco's arrest.

``He did so much business he could have used two more shops,'' said Gene Kolupski, who owns neighboring Gene's Auto Rebuilding. ``With that much business coming through the shop I can't believe he needed to do any fraud.''

Felma Valiente, who runs New Era Auto Glass with her husband, Frank, said she always saw insurance adjusters coming and going from Buttafuoco's shop.

She also has a huge concern for the reputation of their row of auto businesses. Another shop just two doors down was raided by the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives on Dec. 3 during a multistate shakedown targeting the Hells Angels.

``I think we have to move our shop from here,'' Valiente said. ``I keep thinking what's next? This building must be cursed.''

Phillip W. Browne, [phone]

phillip.browne(at)dailynews.com

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(color) Joey Buttafuoco, seen in this February 2001 photo in the barn at his Chatsworth home, was arrested Wednesday at his auto body shop on charges of insurance fraud. Buttafuoco first gained fame in the early 1990s when his teenage lover, 16-year-old Amy Fisher, shot his wife in the head.

John McCoy/Staff Photographer