Lakewood Auto Body in Warwick has agreed to a 40-business-day suspension of its auto body and auto salvage rebuilder licenses and a $10,000 penalty after the Rhode Island Department of Business Regulation found inaccurate repair paperwork on two insurance claims. The agreement schedules two 20-business-day suspension periods, the second from Nov. 2 to Nov. 27, 2026, according to the consent agreement.
The agreement is between the department's Division of Commercial Licensing and Imad Melhem and GNI West Warwick, Inc., doing business as Lakewood Auto Body, Inc., which the agreement says operates at 665 Warwick Ave. It covers department matters 24AB027 and 25AB010. The licenses are Auto Body License No. AB.0002056-B and Auto Salvage Rebuilder License No. AS.0000230.
The respondents acknowledged violating state law, "in that they submitted inaccurate tow slips and/or pre-scans" of one vehicle on one claim and "inaccurate tow, pre-scans and calibrations" of a second vehicle on a second claim. The agreement cites two parts of R.I. Gen. Laws 5-38-10, which lists grounds for suspending or revoking a license: subsection (4), defrauding any customer, and subsection (9), failure to comply with the safety standards of the industry.
The agreement says the first complaint reached the department on Nov. 1, 2024, from a customer whose 2016 Toyota Highlander was towed to Lakewood after a March 2024 accident. The agreement says the repairs took about seven months, and that inspections at two Toyota dealerships later listed problems that included frame-rail damage described as poorly repaired and an axle not fully installed. It also says Lakewood submitted a vehicle scan bearing the address of a West Warwick business that is no longer operating. The agreement says the customer and Lakewood have resolved their disagreement and the customer received remuneration for the repair.
The second complaint came on July 17, 2025, from Farmers Insurance, over a 2015 Nissan Altima. The agreement says Lakewood submitted an invoice from Smith Street Auto Repair in North Providence for $2,246 in front radar, sensor and camera calibrations. Reference data the department consulted showed those systems do not exist on that model, according to the agreement. After a Sept. 25, 2025, subpoena, Smith Street answered on Oct. 2 that it had provided an invoice meant for a different vehicle and that the supervising mechanic, Imad Melhem, had entered the wrong information. The agreement says Secretary of State records list an Imad E. Melhem as Smith Street's president and registered agent. It also says Farmers has not received notice of any correction.
The $10,000 penalty is payable to the Rhode Island General Treasurer in three installments of $3,333.33, due Oct. 1, Nov. 1 and Dec. 1, 2026. The agreement does not say whether any installment has been paid. While the licenses are suspended, the agreement says, no auto body work that requires them may be accepted or performed. The first suspension period was scheduled for Sept. 21 to Oct. 16.
The respondents waived an administrative hearing and any appeal to Superior Court. The agreement says it is the final determination of the matter and a public record. The copy posted by the department shows signatures and counsel for the respondents, Robert Flaherty, but the signing dates are not legible. The agreement contains no statement from the respondents beyond the admissions in its terms.
