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Fbi Puts The Brakes On Fake, Staged Auto Accidents

Thu., May 25, 1995

FBI agents and police in 31 states, including Washington, Wednesday arrested or announced the indictment of 126 persons in a national drive to thwart attempts to defraud insurance companies through fake or staged automobile accidents.

The continuing investigation, called “Operation Sudden Impact,” was initiated in late 1993 in an attempt to curb fraudulent property and personal-injury claims that have cost the insurance industry an estimated $20 billion. The FBI said it costs every American household $200 annually in insurance premiums to make up for these losses.

The officials said the schemes require recruiters, people who do the actual work of making the alleged accident occur or seem to occur and frequently unscrupulous attorneys and medical practitioners who carry out the conspiracy.

Tags: ethics

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