Truck Accident Fraud Would be Targeted By a New Task Force

Lawmakers Push for Federal Task Force to Stop Staged Truck Accident Scams

Proposal Aims to Protect Truck Drivers and Crack Down on Fraud Rings

A group of U.S. lawmakers is urging the federal government to take action against staged truck accident scams. These scams involve criminals who deliberately crash into commercial trucks. Their goal is to file fake injury claims and collect large insurance payouts.

This dangerous trend puts truck drivers and the public at risk. It also raises insurance costs and strains the legal system.

Congressman Mike Collins of Georgia led the effort to address the problem. On May 9, he and six other lawmakers sent a letter to Attorney General Pam Bondi. In the letter, they asked the Justice Department to lead a new task force focused on stopping staged truck accident fraud.

The lawmakers also want help from the Department of Homeland Security, the Department of Transportation, local police, and the private sector.

Staged Accident Cases Are on the Rise

A staged truck accident happens when someone intentionally crashes into a commercial truck. These accidents are part of a bigger scam. The people behind them often work with lawyers, doctors, or other partners. Some of these fraud rings are connected to organized crime.

“These staged accidents aren’t just a financial burden—they’re a serious public safety threat,” the lawmakers wrote in their letter.

Insurance fraud is a major problem in the U.S. The Coalition Against Insurance Fraud reports that it costs $308 billion each year. Of that, $45 billion comes from property and casualty fraud. That includes staged truck accidents.

Real Cases Reveal the Scope of Truck Accident Fraud

Lawmakers shared several examples of real truck accident fraud cases.

In Louisiana, federal investigators uncovered a fraud ring that staged accidents with trucks starting in 2011. That investigation led to 63 people being indicted. Some of those charged were plaintiff attorneys who are accused of leading the scam.

Georgia has also seen a high number of cases. Since 2014, state officials have looked into 63 U-Haul-related fraud cases. These led to 47 arrests. In 2019 alone, there were 20 new criminal cases involving fake U-Haul truck crashes.

One man in Rome, Georgia caused a series of wrecks over four years. He was charged with more than 20 crimes. These included aggravated assault, insurance fraud, and false reporting.

In another case, a Georgia woman admitted to her role in a staged crash scheme. She pleaded guilty in 2022. She told investigators she was paid to recruit passengers for fake accidents. Her case was linked to a New Orleans attorney.

Truck Accident Fraud in New York Called a “Fraudemic”

New York has also seen a sharp rise in this type of fraud. Lawmakers say that some plaintiff lawyers have teamed up with dishonest medical providers. They’ve filed hundreds of fake lawsuits involving both construction and vehicle accidents.

One New York law firm reportedly dropped 200 to 300 lawsuits after an investigation. That move came after the firm was accused of filing baseless personal injury claims.

Immigration and Truck Accident Fraud Linked

According to the letter, some of the people involved in these scams are undocumented immigrants. In some cases, they’re pressured to join these schemes. They may owe money to smugglers who helped them enter the country.

One example involves Angel Peralta Ordonez. He is an undocumented immigrant from Ecuador. In 2023, he filed a workers’ compensation claim just two months after arriving in the U.S. In a deposition, he admitted to using $15,000 in lawsuit loans and $6,000 from compensation payments. He used that money to repay a $21,000 smuggling debt.

Other reports say gangs like MS-13 and Russian criminal groups are running similar scams. Migrants are sometimes forced to undergo surgeries they don’t need. This is done to make their injury claims seem more serious and increase payouts.

Lawmakers Push for Federal Truck Accident Task Force

The lawmakers are calling for a federal task force to fight these growing fraud networks. They want more public awareness, stronger enforcement, and harsher penalties for people who commit or support these crimes.

They also support a new bill: the Staged Accident Fraud Prevention Act. This law was introduced by Congressman Collins and Congressman Brandon Gill of Texas. If passed, it would make it a federal crime to stage a truck accident.

The bill also targets lawyers, doctors, and others who knowingly take part in the fraud. Lawmakers say this will help protect trucking companies and stop the scams.

Henry Hanscom, Senior VP of Legislative Affairs of the ATA, supports the bill. “When con artists seeking a big payday intentionally collide with commercial motor vehicles, their reckless disregard for safety puts innocent truck drivers and the motoring public at risk.”

Letter Signed by Lawmakers Urges Swift Action

The letter to Attorney General Bondi was signed by Representatives Lance Gooden (TX), Tony Wied (WI), Tom Barrett (MI), Glenn Grothman (WI), Tom Tiffany (WI), and Jimmy Patronis (FL).

Lawmakers believe the task force, if created, would help stop these scams. It would also improve safety for drivers, lower insurance costs, and make the legal system more fair for honest companies.

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