Eight New Yorkers have been charged in connection with a scheme to defraud multiple insurance companies of millions of dollars by staging auto accidents.

According to the U.S. Attorney's Office in the Eastern District of New York, the eight charged with mail fraud and conspiracy to commit mail fraud would allegedly rent U-Haul vehicles, drive to Kings and Nassau counties, and either strike or be struck by coconspirators driving and occupying other vehicles.

“These defendants played bumper cars with the lives of unsuspecting New Yorkers, all to enrich themselves through insurance fraud,” says Loretta E. Lynch, U.S. Attorney for the Eastern District of New York, in a statement.

The crew would allegedly respond to various locations to receive treatment for their supposed injuries. They filed insurance claims seeking more than $2 million for Travelers, Allstate, GMAC, Geico, Progressive and Republic Western—U-Hail's insurer.

The defendants received more than $1 million for their alleged claims for injuries and treatments, the attorney's office says.

“Insurance fraud through staged accidents presents a danger not only to the public health but also exacts a high cost to the public in the cost of insurance,” Lynch says.

New Yorkers Shaquana Basnight, Allah Brown, Roshon Cooke, Byron Dudley, Clifford Hawkins, Shawn McFadden, Daniel Osborne and Daniel Thompson were indicted May 8.

If convicted each face a maximum of 20 years in prison, a $250,000 fine and forfeiture of the insurance money they received.

Special Reports /

Eight New Yorkers Indicted on Staged-Accident Scheme Charges

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