According to a release from the North Carolina Department of Insurance, state investigators recently arrested 10 residents on felony charges of auto insurance fraud. The group is accused of defrauding insurance companies of approximately $1 million by filing more than 480 auto claims, in what has been described as the largest auto insurance fraud ring in state history.

The scheme was uncovered by Southern General Insurance Company earlier this year, when company representatives noticed unusual claim activity associated with the same vehicles and the same addresses. The company reported their suspicions to the National Insurance Crime Bureau (NICB), which in turn contacted the Department of Insurance Investigations Division in August. Through the investigation, law enforcement officials found evidence of a staged auto accident ring, and alleged that the individuals arrested caused accidents deliberately, filed fake insurance claims, claimed fake or exaggerated injuries, and misrepresented information on insurance applications.

At least eight insurance companies were affected by the ring, including Southern General, North Carolina Farm Bureau, Nationwide, State Farm, Allstate, GMAC, Atlantic Casualty and Universal.