New York authorities arrested and indicted eight individuals in a $2 million auto accident insurance scheme.
Charges against the eight include mail fraud and conspiracy to commit mail fraud in connection with a scheme to defraud multiple insurance companies of $2 million.
According to the indictment, the defendants staged accidents in Kinds and Nassau counties and later falsely claimed to insurance companies that they sustained physical injuries as a result of the accidents.
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Authorities said the conspirators struck or were intentionally struck by vehicles driven by co-conspirators. Following the accidents, they presented themselves for medical treatement and later filed insurance claims with various insurance companies, according to the U.S. Attorney’s Office for the Eastern District of New York.
Insurers that received claims include: Republic Western Insurance Co. (Repwest), Travelers Insurance Co., Allstate Insurance Co., GMAC Insurance, Geico and Progressive Insurance.
Authorities said the defendants sought over $2 million and obtained over $1 million in payment, for claimed injuries and medical treatment.
Named as defendants in the indictment, according to the U.S. Attorney’s Office, are: Shawnn McFadden, Roshon Cooke, Daniel Osborne, Daniel Thompson, Allah Brown, Byron Dudley, Shaquana Basnight and Clifford Hawkins.
The charges were announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, Keith E. Mike, Acting Inspector-in-Charge, United States Postal Inspection Service, and Raymond W. Kelly, Commissioner of the New York City Police Department.
“As alleged, these defendants played bumper cars with the lives of unsuspecting New Yorkers, all to enrich themselves through insurance fraud. Insurance fraud through staged accidents presents a danger not only to the public health but also exacts a high cost to the public in the cost of insurance,” said Loretta E. Lynch, United States Attorney for the Eastern District of New York. “We and our law enforcement partners will vigorously pursue and prosecute those who seek to profit by such fraud.”
The defendants each face a maximum sentence of 20 years’ imprisonment, forfeiture of over $1 million, and a $250,000 fine.
