Authorities charged eight New Yorkers in connection with a scheme to defraud multiple insurers out of millions by staging auto accidents.
According to the U.S. Attorney's Office in the Eastern District of New York, those charged with mail fraud and conspiracy to commit mail fraud allegedly rented U-Haul trucks to then drive to Kings and Nassau counties to either strike or be struck by co-conspirators 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.
Various ring members obtained treatment for supposed injuries for which they filed claims seeking more than $2 million from Travelers, Allstate, GMAC, Geico, Progressive, and Republic Western—U-Hail's insurer.
Of these claims, the defendants received more than $1 million in compensation.
In addition to posing a danger to public health, staged accidents such as the alleged raise the cost of insurance for consumers.
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 would face a maximum of 20 years in prison; a $250,000 fine; and forfeiture of the insurance money received.
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