Oscar Luis Franco Padron was sentenced in West Palm Beach,Florida on charges of conspiracy to commit mail fraud, conspiracyto commit money laundering, and conspiracy to structure financialtransactions for his role in a staged accident fraud scheme.

|

He now faces 96 months in prison, then three years of supervisedrelease, and $4,351,082.13 in restitution. The sentence sends aharsh message to perpetrators of insurance fraud in Florida andaround the country.

|

Padron and others would recruit car owners who had car insurancefrom certain companies to participate in staged accidents. Padronand his associates referred to the person who caused the accidentat the perro, and the alleged victim was theperra. The scheme would also include the driver's friendsor family, using Florida's no-fault PIP system.

|

The members of the crime ring coached the participants on how tocarry out the accident, what to say to law enforcement, and whattypes of injuries to claim. After the accidents, the defendantssent the participants to chiropractic clinics run by people whohave also faced charges in the scheme. Together the participantsand the clinics falsified paperwork about the type and treatment ofinjuries that was then submitted to the insurance company. Padronwas also found guilty of evading the $10,000 currencytransaction-reporting requirement when converting the scheme's mailfraud profits into cash.

|

A number of others have been sentenced for their part in thefraud scheme, including Joaquin Ross, Aureliano Diaz, Lisbet Leon,Yida Bello, Gloria Cintron, Veronica Riofrio, Ketty Gonzalez,Ernesto Miralles, Julio Fernandez Delgado, and Zachary KeithStuhler. Padron is the highest-ranking member of the team to facesentencing thus far.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.