Fraud of the Week – Friends Commit Fraud Together 

 

Personal Auto Fraud – California 

 

Amount - $36,000+ 

 
Four people were arraigned in a staged accident scheme that endangered an innocent driver and is tied to coordinated insurance fraud. A police department contacted the Fraud Task Force after suspecting that multiple crashes were staged for insurance payouts. In one incident they determined that all parties involved were friends and found that they intentionally crashed into each other. All involved sought medical treatment in order to legitimize the claims and increase insurance payments. The estimated loss in that claim was $36,000. Felony insurance fraud charges were filed against all four individuals.