St. Petersburg Insurance Fraud Charges: Staged Accidents

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Last Updated on: 3rd November 2023, 07:12 pm

 

St. Petersburg Insurance Fraud Charges: Staged Accidents

Insurance fraud is a big problem in Florida, especially staged accidents to get money from auto insurance companies. St. Petersburg has seen some high profile cases recently. Insurance fraud costs everyone money in higher premiums. But people keep doing it because it can be very lucrative if you don’t get caught.

One common scheme is staged car accidents. A “runner” finds people willing to fake a crash and file injury claims. Everyone gets a cut of the insurance payout. But it’s illegal and charges can include insurance fraud, grand theft, and more. Penalties get worse based on the amount of fraud.

Recent St. Petersburg Insurance Fraud Cases

Here are some examples of recent insurance fraud cases in St. Petersburg:

• In 2021, Albert Lonzo Adams III was arrested again for pet insurance fraud related to his charity Soaring Paws. He had already admitted in 2018 to misusing funds from the charity.
• In 2021, Anthony Petro was charged with insurance fraud for filing a false claim. He had to post a $10,000 bond.
• In February 2021, Reginald Lamar Kendrick was arrested for selling fraudulent auto insurance policies while impersonating an agent.
• In 2019, a staged accident ring in Tampa Bay was busted. Over $100,000 in fraudulent claims were filed. Three people were arrested.

As you can see, insurance fraud comes in many forms. Staged accidents are common but not the only type. People find creative ways to try and cheat insurance companies. But they often get caught.

How Staged Crashes Work

Staged crashes involve a “runner” who recruits people to fake accidents and file injury claims. The runner organizes everything and takes a cut. They usually target areas with lots of businesses and traffic cameras, so the crash looks real on video.

The runner rents a car and finds a target vehicle to hit, often an older model. The crash is staged in a place like a parking lot when traffic is light. The participants call police and act like normal accident victims.

After the fake crash, they go to “crooked” chiropractors and lawyers who are part of the scam. These people file injury claims with the insurance company, which end up paying out large settlements for things like “pain and suffering.”

Red Flags Insurance Companies Look For

Insurance companies are on the lookout for signs of staged crashes. Here are some of the red flags they watch for:

• Multiple participants all go to the same doctors or lawyers after the accident.
• Injuries claimed are subjective with no verifiable symptoms, like soft tissue damage or whiplash.
• Pre-existing damage to the vehicles involved.
• Driver histories show past insurance claims.
• Facebook profiles reveal participants know each other.

With so many participants in the scam, it’s hard to keep everything looking legit. One slip up during the insurance investigation can expose the whole scheme. But the potential payout keeps people trying.

Charges and Penalties

If caught, participants in staged crashes face a mix of criminal and civil charges. Prosecutors typically pursue the most serious charges they can prove.

In Florida, common charges include:

• Insurance Fraud – Felony if over $50,000 in claims. Punishable by 5-10 years in prison.
• Grand Theft – Felony if over $300 value stolen. Up to 15 years prison.
• Scheme to Defraud – Felony up to 5 years prison.
• Making False Insurance Claim – Felony up to 5 years prison.

Prosecutors can also pursue charges like perjury, organized fraud, racketeering, and more. Penalties increase if convicted of multiple crimes.

In addition, insurance companies sue participants to recover money paid on fraudulent claims. This can mean garnished wages and liens on property.

The costs simply aren’t worth the risk. But people think they can get away with it. And many do, for a while.

Defenses Against Insurance Fraud Charges

Fighting insurance fraud charges starts with hiring an experienced criminal defense attorney. Possible defenses include:

• No knowledge – Argue you didn’t know about the scheme or intent to defraud.
• Entrapment – Claim law enforcement induced you to commit fraud.
• Duress – Argue you were forced or coerced to participate.
• Mistake – Say it was an honest mistake or misunderstanding.

An attorney can also challenge the strength of the prosecution’s evidence and witnesses. Police often use undercover operations and informants to build insurance fraud cases. Their credibility can be attacked.

In addition, the defense will scrutinize documents like medical records and insurance claims for mistakes or inconsistencies. This could undermine the prosecution’s theory of fraud.

But staged accident rings can be challenging to defend. Often, the best strategy is a plea deal to lesser charges before trial.

How to Report Suspected Insurance Fraud

If you suspect an insurance scam or staged crash, report it immediately. Here’s how:

• Contact your insurance company’s fraud investigation unit
• Call the National Insurance Crime Bureau hotline at 1-800-TEL-NICB
• Submit a fraud report to the Florida Division of Investigative and Forensic Services
• Notify local law enforcement

Your information could lead to the detection and prosecution of an insurance fraud ring. Most companies allow anonymous reporting. Do your part to stop these costly crimes.

Avoid the Temptation

Insurance fraud may seem like easy money, but the consequences are severe when you get caught. And you usually do. Instead of taking the risk:

• Don’t give in if someone approaches you about a staged crash. Just say no.
• Steer clear of shady doctors, lawyers, and body shops who enable fraud.
• Report suspicious claims or activities to insurance companies.
• Help spread awareness about the costs of insurance fraud.

We all pay the price through higher premiums. Take a stand against insurance scams in your community.