Pub2-2021-Issue3

22 Kentucky Trucker CRASH HUSTLERS STAGED “ACCIDENTS” ARE ON THE RISE; F raudulently staged “accidents” targeting truckers are increasing, but motor carriers can fight back with video evidence by educating their drivers and being prepared before the encounter happens. That advice came from Matthew Smith, executive director of the Coalition Against Insurance Fraud and an attorney who, for 35 years, defended insurance companies in court. Smith said staged accidents were common for many years, but then happened less often at the turn of the millennium when crooks shifted their focus to internet- based fraud. They returned with the advent of the Great Recession around 2008 and 2009 and have increased since then. In Louisiana, an organized crime ring led by an attorney staged a series of accidents that so far has led to 33 indictments and 23 guilty pleas, as reported by Transport Topics. The attorney in June pleaded guilty to conspiracy to commit mail and wire fraud, and faces up to five years in prison. In June, a married couple who was part of the ring was sentenced to 48 months in federal prison for participating in a staged accident that resulted in $4.7 million in court settlements with C.R. England. That carrier and also Southeastern Motor Freight have filed racketeering lawsuits against the perpetrators. Dangerous Plots From Criminal Minds Fraudsters are targeting commercial vehicles for several reasons, Smith said. First, while a passenger car may or may not carry adequate insurance, a commercial vehicle is assured of having a large-dollar insurance policy. Also, a big rig is harder to brake [to a stop], and the “accident” is more likely to create a more dramatic impact and graphic photos, Smith said. Smith’s Coalition Against Insurance Fraud was created in 1993 by two groups that often work against each other – what is now the American Property and Casualty Insurance Association, By Steve Brawner EXPERTS ADVISE HOW TRUCKERS CAN FIGHT BACK