Congress Must Act to Combat Staged Car Crash Fraud Threatening American Motorists

In 2020, Cornelius Garrison was tragically murdered in New Orleans. His cooperation with federal authorities in an insurance fraud investigation made him a target. Garrison helped orchestrate staged car crashes, instructing participants to deliberately collide with trucks, all with the goal of extracting fraudulent insurance settlements. The wrecks he arranged were not mere accidents; they were part of a calculated scheme to exploit the legal system. Victims were funneled to Vanessa Motta’s law firm, where fraudulent lawsuits were filed knowingly. Garrison’s commitment to exposing this criminal network ultimately cost him his life.

As of today, nine individuals are facing charges connected to this specific conspiracy, according to an indictment from the U.S. Department of Justice. This troubling case is just the tip of the iceberg. Over 63 individuals have now been implicated in a federal investigation into similar schemes involving staged car crashes throughout the New Orleans metropolitan area. Alarmingly, these fraudulent practices are not confined to one city; they are found in urban centers across the nation.

The Rising Threat of Staged Accidents

These networks are systematically orchestrating collisions involving trucks, rideshare vehicles, and personal cars. The result is a surge in injury claims, accompanied by insurance settlements that the general public ultimately pays for. Motorists everywhere find themselves facing the unsettling reality of choreographed collisions designed for profit.

The Role of Criminal Networks

Congress holds the power to curb this growing issue. Earlier this month, I, along with a coalition of U.S. representatives, urged Attorney General Pam Bondi to create a federal task force aimed at investigating and dismantling these criminal enterprises. The call for immediate action should resonate in Washington.

Motorists today navigate roads fraught with dangers crafted by criminals. Imagine a scenario where two compact sedans deliberately box in an eighty-thousand-pound truck. The lead car suddenly brakes, putting the truck in a precarious position. The result? A staged accident that victims can exploit through legal means. The Coalition Against Insurance Fraud indicates that these scams siphon approximately $308 billion annually from the U.S. economy, including $45 billion from the property and casualty insurance sectors.

The Economic Impact

Commercial vehicles, such as large trucks and ridesharing cars, become primary targets for these fraudsters. This exploitation occurs because the liability limits for these vehicles are substantially high, leading juries to often blame the larger entities in accidents. Independent truck driver insurance premiums have surged nearly 50% in just three years, creating additional financial strain in an already challenging industry.

In Georgia, for instance, 23% of every Uber ride’s cost goes toward insurance. Such statistics illustrate the far-reaching impact of this fraud. Less truck traffic on our roads doesn’t merely inconvenience drivers; it leads to elevated freight rates and diminished product availability, ultimately affecting every consumer.

Legal Ramifications and Recommended Actions

This fraud undermines the rule of law, where free markets require genuine risk to dictate insurance pricing. Honest drivers find themselves unfairly subsidizing the deception of fraudulent claims. In New York, known as the center of this so-called “fraudemic,” an alarming rise in staged accident lawsuits has prompted extensive investigations. Following a series of probes, one billboard attorney firm was forced to withdraw hundreds of dubious claims. Since 2014, 63 investigations into U-Haul-related fraud have led to 47 arrests, highlighting the extensive nature of this issue.

A focused federal task force has the potential to dismantle these operations for good. New legislation is also essential to strengthen the fight against this fraud. I introduced the Staged Accident Fraud Prevention Act to make orchestrating a crash for financial gain a specific federal offense, complete with strict penalties. While fraud is already illegal, current punishments are inadequate for this burgeoning industry of organized scams that yield million-dollar payouts. The law must reflect the enormity of the crime.

Ensuring Justice for Genuine Victims

This legislation guarantees that true victims still retain the opportunity to seek justice in court. The only things this act removes are the incentives for fraudsters to stage accidents or recruit individuals as props for their scams.

The first beneficiaries of this reform would be consumers. Reducing fraudulent claims will naturally lead to lower insurance premiums. Small trucking companies will be able to continue their business operations, and rideshare passengers will see decreased costs per ride. In turn, our roads will become safer for everyone.

Building Support for Reform

The momentum for substantial reform is gaining traction. Organizations like the American Trucking Association, the Owner-Operator Independent Drivers Association, and rideshare companies such as Uber are advocating for quick action to establish a task force. These groups operate on our roads daily, witnessing firsthand the impact of staged accidents.

A Call to Action

The future direction is clear. The Department of Justice must initiate this task force, and Congress needs to pass the Staged Accident Fraud Prevention Act without delay. While staged-accident fraud may not dominate nightly news broadcasts, it drains our financial resources and threatens public safety. It is time for Congress to act decisively and put an end to this growing issue.