‘Op Cabbie’ Reveals Fraud Ring

The Los Angeles County Auto Insurance Fraud Task Force arrested more than a dozen suspects and served search warrants at 18 locations throughout the Glendale, Calif. area, including medical clinics, law offices and private residents in connection with an insurance fraud investigation dubbed “Operation Cabbie.”

Staged or “paper collisions” were allegedly planned throughout the Los Angeles County area and worked with law offices to file fraudulent claims with insurance companies. Medical and chiropractic clinics were also involved by billing for alleged treatment provided to question victims. Half a million dollars in fraudulent claims have been linked to at least 13 staged collisions.

Approximately $500,000 in fraudulent claims were made to insurance companies. Mercury and Safeco Insurance Companies and the National Insurance Crime Bureau also assisted in the investigation. Each count of insurance fraud carries a maximum sentence of five years in state prison and/or fine of up to $50,000.

Topics Fraud