Insurance Fraud, Staged Accident Charges in Las Vegas
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Insurance Fraud and Staged Accident Charges in Las Vegas
Insurance fraud is a big problem here in Las Vegas. Lots of folks try to cheat insurance companies by staging fake car crashes and filing false claims. It’s illegal, but some people think it’s easy money.
Well, I’m here to tell you it ain’t worth it! The cops are wise to these scams now, and you’ll end up with felony charges if you get caught. Let me give you the low-down on how these staged accidents work, what the law says, and why you should just avoid this type of fraud altogether.
How Staged Crashes Work
Staged accident rings usually involve a ringleader who recruits participants and plans the crashes. The ringleader scouts out remote crash locations with no cameras. Then they buy a used luxury car and insure it with high limits, like $100k per person.
On the night of the scam, everyone meets at a staging area away from the crash site. The drivers use their real licenses since they’ll need to show them to cops. Participants are told to get in the cars so airbags trap them inside after impact.
After the crash, the “victims” claim they just happened to be insured but don’t have their member cards. Later, they get itemized bills and pay cash at discounted rates or skip paying at all. The ringleader pretends to be their representative and negotiates big settlements from the insurance companies.
The crashes are set up to cause “soft tissue” injuries that are hard to disprove, like whiplash or back pain. That way the victims can claim medical costs and lost wages, racking up the insurance payouts. Ringleaders can make hundreds of thousands per accident.
Las Vegas Staged Crash Cases
Here in Vegas, Attorney General Adam Laxalt has gone after a bunch of staged crash rings the past few years. In September 2017, 24 people got charged for a scam involving over $500k in fraudulent claims.
The AG announced more guilty pleas in early 2018 from defendants in that case. By March, three more people had pleaded guilty to felony insurance fraud and conspiracy. In total, the scammers filed 23 bogus claims for the staged crashes and thefts.
In another case, a family pocketed $6 million from 33 staged wrecks between 2013-2018, according to New York Magazine. The feds indicted 22 of them with 101 counts of fraud before the statute of limitations ran out.
The family let the ringleader, Mize, stage crashes with their cars. He paid them to be “victims” and claim fake injuries to rake in insurance settlements. When the bust went down, turns out Mize ratted them all out!
The Charges and Penalties
If you get caught staging crashes in Nevada, you can face multiple felony charges:
- Racketeering
- Conspiracy
- Battery with a deadly weapon (for causing the crash)
- Insurance fraud
- Money laundering
Insurance fraud alone can bring up to 4 years in prison and $5,000 in fines. But with multiple charges, penalties stack up fast. Conspiracy and racketeering convictions can mean decades behind bars.
Restitution is also required to repay insurers and victims for any fraudulent claims paid out. For big staged crash operations, that can easily be hundreds of thousands in restitution.
Why Staged Crashes Are a Bad Idea
Hopefully I’ve convinced you that insurance fraud is too risky. Here’s a recap of why you should avoid staged accidents:
- You’ll very likely get caught and face felony charges
- Can end up with years in prison if convicted
- Must pay massive restitution to insurance companies
- Criminal record makes it hard to get jobs
- Hurts innocent accident victims with higher insurance rates
It just ain’t worth it for some quick cash! The law treats these scams very seriously now. Insurance companies have wised up too and can spot suspicious patterns.
My advice? Make an honest living and don’t risk your future on staged crashes. We all gotta play by the rules to have a fair system. Avoid the temptation of easy money and stay on the right side of the law.
Well, I hope this gives you the straight scoop on staged accidents and insurance fraud. Stay safe out there on the roads, folks!
References
- Nevada Attorney General – 3 More Guilty Pleas in Staged Accident Ring
- Nevada Attorney General – 5 Guilty Pleas in Staged Accident Ring
- Review Journal – 24 Charged in Las Vegas Car Crash Scheme
- Insurance Journal – 24 Indicted in Vegas Staged Crash Case
- New York Magazine – Family Made $6M From Staged Crashes
- Body Shop Business – 24 Charged in Vegas Car Crash Caper