Thirteen individuals – including an NYPD police officer, four physicians, and an attorney – have been arrested in connection with two massive automobile insurance fraud schemes that collectively stole $100 million from insurance companies. The suspected gang members were taken down on January 12th in what federal officials are calling one of the largest no-fault insurance frauds in history.
As part of their elaborate scheme, the fraudsters allegedly bribed 911 operators and hospital staff for confidential information about motor vehicle accident victims, who were steered toward medical clinics involved in the ring. Corrupt doctors then performed unnecessary and often painful medical treatments in order to fraudulently overbill insurance companies and exploit no-fault insurance laws. New York and New Jersey no-fault insurance laws mandate insurers automatically pay for motor vehicle accident victim’s medical bills in certain situations.
In announcing the arrests, U.S. Attorney Damian Williams stated, “Schemes exploiting no-fault insurance laws – which ironically exist to make insurance more affordable – also result in higher costs, and unfairly burden all consumers in the auto insurance market.”
New York State Police Superintendent Kevin P. Bruen commented: “Our investigation uncovered a large-scale, complex scheme that resulted in millions of dollars of fraudulent insurance claims. This type of fraud impacts the entire system and results in higher costs for companies and policyholders.”
Fight Back Against Auto Insurance Fraud
You can help in the fight against auto insurance fraud by taking some simple precautions:
Drive carefully to help avoid accidents. Adjust your speed to conditions and maintain a proper following distance. By doing so, you give yourself maximum visibility to what is ahead of you, and adequate time to slow, stop or take evasive action when a hazard is present.
Install an onboard camera in your vehicle. It provides unbiased and accurate video evidence in an accident or incident.
If you are involved in an accident:
Contact local law enforcement and request an official report with the officer's name. An official police report makes it more difficult for scammers to inflate damage to their vehicle after the accident occurs and file a larger claim.
Take photos at the accident scene. The photographs you take at an accident scene can effectively combat costly insurance fraud and preserve your company’s hard-earned reputation. However, avoid taking photographs of anyone who has been injured.
Be cautious of tow truck drivers who show up at the accident scene before you've called for help. Crooked drivers may tow your vehicle at an inflated rate. If you need your vehicle towed, your insurance claims representative should be able to provide you with some recommendations.
Stay clear of “helpful” bystanders. Watch out for people who show up quickly to an accident scene, and try to direct you to a particular repair shop, lawyer, doctor, or medical clinic.
Report the accident to Lancer Insurance Company immediately. By collecting information and establishing facts quickly, the opportunity for someone to commit insurance fraud against your company is reduced.
If you suspect you are the target of an insurance scam:
Call Lancer's Special Investigation Unit Fraud Hotline at 800-533-8552 or email us at stopfraud@lancerinsurance.com.
Contact the NICB hotline at 800-TEL-NICB to report any incidents of suspected insurance fraud.
Report fraud to your state authority. Most states have insurance fraud units dedicated to investigating and prosecuting insurance fraud.
