Washington – Today, the American Trucking Associations applauded Congressmen Mike Collins (R-Georgia) and Brandon Gill (R-Texas) for introducing the Staged Accident Fraud Prevention Act.
The bill would make it a federal crime to engineer a crash with a commercial motor vehicle. This hazardous and increasingly pervasive phenomenon is being used by criminals to manipulate the legal system and extort seven-figure settlements from trucking companies.
“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. These unscrupulous individuals perpetuate their selfish actions by filing frivolous lawsuits against honest trucking companies, raising costs for consumer goods and contributing to soaring insurance premiums,” said American Trucking Associations Senior Vice President of Legislative Affairs Henry Hanscom. “ATA commends Congressmen Mike Collins and Brandon Gill for introducing the Staged Accident Fraud Prevention Act, which would close legal loopholes that criminals are exploiting to attack America’s hardworking truckers. By establishing clear, enforceable criminal penalties that apply to all of the conspirators involved in staged collisions, we can finally put an end to this dangerous and costly practice.”
A wide range of schemes in recent years have targeted trucking companies, and these sophisticated fraudsters often have ties to organized crime. One such criminal ring was exposed in Louisiana for staging accidents with unsuspecting commercial trucks beginning in 2011. To date, 63 people have been indicted in the federal probe into this conspiracy, including plaintiff attorneys who are alleged to have been the masterminds.
The Staged Accident Fraud Prevention Act would provide a strong, necessary deterrent to prevent these dangerous and costly schemes from taking root, while offering critical protections to the motor carriers and drivers who tirelessly power our nation’s economy and supply chain.
Specifically, the bill establishes straightforward criminal penalties not just for the drivers who stage these collisions – but also for the attorneys, physicians, and other co-conspirators who knowingly participate in the fraud to extort victimized motor carriers.