Car Insurance Fraud Doesn’t Pay - 101 Fraudsters Indicted in One Bust

Car insurance fraud is not a crime against big, faceless car insurance companies or their millionaire executives. It isn't even a crime against the company's shareholders or employees - it is a crime against everyone, since everyone pays the price with higher car insurance rates. Luckily, law enforcement is beginning to take car insurance fraud as the serious crime that it is - just ask the 101 criminals who were indicted in Los Angeles County earlier in 2007.

The L.A. Fraudsters - A Real Motley Crew

The gang of L.A. fraudsters consisted of two attorneys, 13 office administrators, and 86 car insurance claimants. In all, over 200 charges were filed against this motley crew of miscreants, including 117 counts against the ringleader, Jorge Yang. Eighty-eight people have been arrested thus far, with the remainder overseas or at-large. Authorities say the bandits stole more than $500,000 from car insurance customers over the course of a two year period, making this one of the largest car insurance rings in the history of the United States.

How They Did It - What to Look Out For

Unlike most car insurance fraud rings, in which people stage accidents in order to file bogus claims, the car insurance claimants in this case had legitimate accidents. Instead, the fraud began once they visited their corrupt attorneys, who worked out deals with them and a chiropractor's office. The chiropractor would over-bill the car insurance company for visits that the clients never made. These over-billing proceeds were then split between the attorneys, the insurance claimants, and the chiropractor. It seemed like a foolproof plan, until one courageous whistleblower who worked for the chiropractor alerted the authorities.

Now ask yourself: What would you have done? After being in a traumatizing car accident, you visit your attorney. You are probably worried about the expense of hiring a lawyer, but instead, he or she tells you that you can make one or two thousand dollars by just going along with the plan. You know it's wrong, but you're not really doing anything but keeping your mouth shut, right? After all, if the plan falls apart, it's the lawyer and the chiropractor who will be held accountable, right? This is probably what the 86 insurance claimants who are now in jail thought - they thought wrong.

$142 a Year Out of Your Pocket

Car insurance fraud costs American families as much as $15 billion a year - that's $142 per household, or almost $12 per month. If someone broke into your house and stole $12 from your wallet each month, how would you feel? This is exactly what car insurance fraudsters do.

If you're ever approached to participate in car insurance fraud, don't just say no - say no and report it to the authorities. Car insurance fraud is serious business and it is a serious crime. You wouldn't let a thief get away with an old lady's purse if you could stop him, would you? Car insurance fraudsters steal from the purses and wallets of all Americans, so they must be stopped whenever possible.