Large Staged Collision Insurance Fraud Ring in California Busted

Detectives from the California Department of Insurance arrested more than two dozen people on multiple felony counts of insurance fraud for allegedly staging auto collisions to scam more than four insurance companies out of tens of thousands of dollars.

The suspects reportedly submitted 26 fraudulent insurance claims totaling more than $140,000.

Once the insurers paid the claim, the suspects pocketed the proceeds and did not repair damaged vehicles, according to investigators.

CDI detectives, along with Fresno County District Attorney investigators, launched an investigation after receiving suspected fraud referrals from the insurance company. The California State Automobile Association Insurance Group assisted in the investigation.

The investigation showed the suspects orchestrated an elaborate scheme to defraud insurers with paper collisions that never occurred or by intentionally damaging vehicles to submit fraudulent claims.

The organized ring reportedly recruited some co-conspirators with promises of cash or fixing their previously damaged vehicles. Another element of scheme included stealing people’s identities to submit fraudulent claims, according to detectives.

“Insurance fraud costs insurers billions every year and those costs are all passed along to consumers through higher insurance premiums,” Insurance Commissioner Dave Jones said in a statement. “Bottom line-everyone pays for insurance fraud.”

Suspects were booked into the Fresno County Jail. The Fresno County District Attorney is prosecuting this case.

Topics California Fraud