17 Face Charges for $634,000 in Auto Insurance Fraud

The attorney for the Eastern District of Pennsylvania has revealed that 17 people have been named in a 40-count federal indictment alleging insurance fraud related to false medical claims and fake traffic accidents. Among thedefendants facing charges are some of the industry’s largest writers of car insurance, including a chiropractor and attorney.

Fake Accidents, Fraudulent Claims and More

As noted by the attorney, Michael L. Levy, the defendants allegedly bilked at least 16 carriers and made fraudulent injury claims that mounted to more than $634,000. In a statement, Levy said the supposed accident “victims” allegedly filed fraudulent insurance claims after staging fake accidents, or after receiving medical treatment for their fake accident-related injuries during the years 2004 to 2007.

Some of the companies cheated in this huge scam include Metlife, Progressive,State Farm, Liberty Mutual, Allstate, AIG National Insurance Co. andUSAA.

Fraud’s a Big Problem in Pennsylvania

It seems that this new round of indictments is just the latest phase in a wide-ranging investigation looking intocar insurance fraud the state of Pennsylvania. The investigation began in 2007 and has so far been successful in charging 83 people (53 of which have plead guilty) of filing fraudulent insurance claims and more.

According to the Insurance Research Council, insurance fraud added $4.8 billion to the $6.8 billion in excess payments to auto injury claims in 2007.

Unfortunately, people find the need to get involved in unsuccessful car insurance fraud scams to make a quick buck orpossibly even save money onauto insurance.But if you’re really in a pinch, there are other ways to lower auto insurance costs. There should be no scam on earth worth severe fines and potential jail time.