U.S. Senator Ashley Moody (R-Florida)
WASHINGTON – A Florida senator has introduced a bill meant to combat the growing number of illegal staged auto accidents.
Last week, U.S. Ashley Moody (R-Florida) introduced the Staged Accident Fraud Prevention Act. Supporters say the legislation would restore fairness to the legal system as well as protect businesses and consumers.
It’s a companion bill to House Resolution 2662, sponsored by Representatives Mike Collins (R-Georgia) and Brandon Gill (R-Texas).
Staged auto accidents, also known as “crash-for-cash” schemes, have been increasing in frequency and sophistication over the past several years, especially in dense, high‑traffic states and urban areas. The accident is designed to look like a genuine crash so the schemers can file false insurance and injury claims. The vehicles often suffer relatively minor damage compared to the size of the bodily‑injury and repair bills later submitted.
Despite an increase in such accidents, few states have taken action to combat these fraud schemes.
The bill would make intentionally staging a collision with a commercial motor vehicle a federal criminal offense. It also would establish criminal penalties for individuals who organize or participate in staged crashes. And it would hold attorneys, physicians and other co-conspirators accountable if they knowingly participate in this fraud.
“With over 450,000 trucking jobs in Florida, it is safe to say that truck drivers keep the economy moving,” said Moody, a former Florida attorney general. “Unfortunately, there are crazed and dangerous fraudsters out there who would rather put people’s lives in danger for a quick payday instead of making an honest living putting in a hard day’s work. Anyone who stages or helps stage an accident with a commercial motor vehicle endangers people’s lives and livelihoods.
“On top of that, these stunts run up insurance premiums for everyone. Unacceptable. This legislation sends a clear message: if you do this, you will be prosecuted.”
Florida has a high occurrence of staged accidents, as does Louisiana.
In March, two Louisiana attorneys were found guilty of charges related to staging such accidents. In all, more than 60 people have been charged in a federal probe of staged accidents in the New Orleans area.
And in 2021, attorney Danny Patrick Keating pleaded guilty to involvement in such a sceme, admitting to paying another cooperating government witness to stage 31 accidents. Keating said he represented 77 plaintiffs in subsequent lawsuits.
The president of the U.S. Chamber of Commerce Institute for Legal Reform praised the legislation.
Waguespack
“Staged accidents are a dangerous and costly crisis that is threatening public safety and household budgets across America,” Stephen Waguespack said. “Senator Moody’s leadership on the Staged Accident Fraud Prevention Act builds on the momentum to put a stop to these organized crime rings that specifically target trucking businesses.”
The ILR says these schemes reveal a playbook used nationwide by organized fraud rings: stage the crash, fabricate injuries, team up with willing billboard lawyers, medical accomplices, and litigation funders and then exploit loopholes in the legal system to turn a profit.
In May, five suspects were arrested in Florida following an alleged staged crash scheme, and the state recorded over 1,000 of these accidents in 2024.
The ILR says these staged accidents not only endanger innocent drivers but also raise costs for consumers and businesses.
For trucking businesses, staged collisions have a major impact on their bottom line. In 2022, litigation expenses across the automobile sector cost the U.S. economy $58 billion, according to an ILR report.
Other groups also praised the introduction of the Moody’s bill.
“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,” said Henry Hanscom, chief advocacy and public affairs officer of the American Trucking Association. “The frivolous lawsuits these rapacious individuals file against honest trucking companies contribute to soaring insurance premiums and raise costs for consumer goods. …
“By establishing clear, enforceable criminal penalties, we can finally put an end to this dangerous and costly practice.”
The Independent Insurance Agents & Brokers of America says staged accidents endanger motorists, disrupt supply chains and fuel lawsuit abuse.
“This commonsense measure will help deter insurance fraud, reduce unnecessary litigation costs and ease the pressure of rising insurance premiums on responsible commercial operators and consumers nationwide,” said Nathan Riedel, IIABA’s senior vice president of federal government affairs.
The National Association of Mutual Insurance Companies agreed.
“Every day, staged accidents and fraudulent schemes put innocent lives at risk and raise costs for every American,” said Jimi Grande, NAMIC’s senior vice president of federal and political affairs. “The Staged Accident Fraud Prevention Act will help coordinate law enforcement in combatting these sophisticated crime rings and bring the weight of federal law to stopping them.
“NAMIC commends Senator Moody for her leadership on this issue and for working to lower costs and make Americans safer on our roads and highways.”
