Scam city streets: An imminent danger unveiled
Staged auto accidents are a risk for everyone, and lawmakers in Congress, in conjunction with the Department of Justice, have the power to prevent this fraud. According to Representative Mike Collins, these incidents pose a threat to public safety.
Get the latest buzz on Foxnews.com with our top headlines for May 26.
In the grim underworld of New Orleans, Cornelius Garrison met an untimely end in 2020. The man was a key player, aiding the feds in probing a deceitful "crash-for-cash" insurance fraud racket. For years, he'd staged deliberately wrecked vehicles, directing hapless participants to ram into trucks, with the malicious goal of milking their insurance companies. The accident victims would then be steered to lawyer Vanessa Motta’s office, where alleged fraudulent lawsuits were filed. All this tragedy because Garrison dared to expose the crooked network.
Nine suspects now face charges for their part in this orchestrated auto collision scam, as per the indictment from the U.S. Department of Justice. To date, over 63 individuals have been indicted in a federal probe of the New Orleans metro area's staged car crashes. Worse, this lethal charade isn't confined to the Big Easy. Vipers experimenting with collision choreography are operating in metropolitan areas nationwide.
TRUMP ADMINISTRATION: BRING BACK ENGLISH LANGUAGE REQUIREMENT FOR TRUCK DRIVERS
Action from Congress is essential. Recently, I've been rallying U.S. representatives to appeal to United States Attorney General Pam Bondi to establish a federal task force to investigate and prosecute these rings, thus effectively shutting them down. The Trump administration needs to move immediately.
New York's streets are no haven for unsuspecting motorists. Shockingly, the city is a hub of the countrywide staged accident problem. FILE - A truck cruising through a Soho intersection in Manhattan.
America's road users find themselves under constant peril when they take to the highways. It might seem like a pair of sedans are twisting a 80,000-pound tractor-trailer into a fatal game of chicken. The lead car suddenly slams on the brakes, and physics takes over. Next thing you know, the truck's clobbered a vehicle whose participants instigated the entire scheme. The injured parties made calls to a lawyer, and the courtroom drama begins. The Coalition Against Insurance Fraud estimates that such scams contribute to a staggering $308 billion annual drain from the U.S. economy, including $45 billion from property-and-casualty lines.
Long-haul truck drivers and rideshares are popular targets because of the high liability limits and the tendency of juries to pin the blame on the colossal trucks and corporate entities. Premiums for independent truckers have surged more than 40% in the last three years.
AUTO OWNERS FRETTING OVER RISING INSURANCE PREMIUMS
In our home state of Georgia, a staggering 23% of every Uber ride goes straight into insurance costs. Reduced truck traffic pushes freight rates higher and means narrower product inventories. You guessed it, shoppers bear the brunt.
The fraud collectively ravages the rule of law. Vibrant markets can only thrive if real peril, not artificial threats, determine insurance pricing. Sincere motorists subsidize strategic deceit. The reach and impact of this fraud are nothing short of earth-shattering.
In New York, the epicenter of the so-called "fraudemic," a surge in the number of staged-accident lawsuits and collaboration between plaintiff lawyers and medical providers sparked probes that forced a billboard attorney firm to abandon over 200 baseless claims. Since 2014, at least 63 investigations involving U-Haul-related fraud have taken place, resulting in nearly 50 arrests and 20 criminal cases opened in 2019 alone.
A concentrated federal task force could be the answer that puts an end to the mess. Strengthened regulations must complement the effort. I am spearheading legislation, the Staged Accident Fraud Prevention Act, which would classify causing a crash for cash as a federal crime deserving substantial imprisonment time. Existing penalties were drafted for isolated incidents, whereas the burgeoning industry of assembly-line fraud is generating million-dollar payments. The law needs to be commensurate with the crime.
This law still ensures that genuine victims will have their day in court. Only the temptation to fabricate injuries or enlist passengers as props will vanish.
The motion benefits regular people the most. Sunken fraud costs equate to lower premiums. Smaller trucking operations can continue to operate and sustain jobs. Rideshare clients can save money on their total ride expense. Roadways will grow safer.
Support for overarching reform is gathering momentum. The American Trucking Association, the Owner-Operator Independent Drivers Association, and rideshare platforms like Uber have all clamored for swift action regarding the establishment of a task force. These stakeholders witness the issue frontline every day.
Time is of the essence. Launch the task force now. Pass the prevention act. Staged accidents might not secure prime-time headlines, but they deplete wallets and threaten lives. Congress has the power, and it's time to act.
Mike Collins represents Georgia's 10th Congressional District. With decades of experience as an entrepreneur, businessman, and employer, Collins and his wife Leigh Ann started a trucking company in the 1990s, employing over 100 Georgians and transporting freight all across the nation.
- The fraudulent "crash-for-cash" insurance scam is a concern that stretches beyond New Orleans, impacting the economy and general news nationwide.
- The Trump administration has a significant role in addressing this issue, as the rising insurance premiums for truck drivers and rideshares are a direct result of staged accidents, leading to a drain on the U.S. economy.
- To combat this ongoing problem, Mike Collins is spearheading the Staged Accident Fraud Prevention Act, which would classify causing a crash for cash as a federal crime and ensure genuine victims have their day in court, ultimately benefiting regular people, smaller trucking operations, and rideshare clients.
