Twenty Californians were recently arrested on multiple counts of insurance fraud for a staged auto collision ring, which racked up estimated losses of $4 million.

The ring, named "Operation Freeway Squat" by the Los Angeles County Auto Insurance Fraud Task Force (AIFTF), allegedly involved staged auto accidents on Southern California freeways for more than two years. The 20-something participants staged "swoop and squats," meaning they would allegedly target a victim, maneuver a squat vehicle in front of him, and use another vehicle to cut-off or swoop the squat vehicle giving the appearance of a legitimate reason to slam on the brakes. The victim is then unable to stop in time before crashing into the back of the squat vehicle.

The AIFTF, California Highway Patrol, and L.A. County District Attorney's office began investigating the case in March 2004. They served a multiple location search warrant that included a chiropractic clinic, a law office, and three residences. Dozens of people are suspected of participating in this staged auto collision ring, said Insurance Commissioner John Garamendi. Evidence from the investigation led AIFTF investigators to discover another suspected insurance fraud ring, which involved one couple from the first investigation, plus a chiropractor and a medical facility.