Garden State Auto Fraud Scheme Broken

July 25, 2002

New Jersey investigators report they have broken up a fraud ring that allegedly set up nearly 100 auto crashes and cost insurance companies some $2 million in bogus claims, according to the Associated Press.

Grand juries indicted 28 individuals, charging them with racketeering, conspiracy, fraud and theft by deception.

The crashes took place in New Jersey and New York City between 1997 and 1999. The defendants reportedly chose to set up crashes or participated by driving cars into fixed objects or vehicles whose occupants were not involved in the conspiracy.

The participants then went to clinics where they were treated for nonexistent injuries.

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