A new bill introduced this week by Sen. Ashley Moody (R-FL) would make it a federal crime to engineer a crash with a commercial motor vehicle.
The Staged Accident Fraud Prevention Act (S. 5058) is direct action to quell a growing trend of fraudsters who stage accidents with trucks and other commercial vehicles to create frivolous lawsuits and seek large insurance settlements for damages and alleged injuries. On top of the fraud and the sapping of law enforcement hours and resources, this dangerous and increasingly pervasive criminal scheme deliberately puts innocent motorists at risk, all to manipulate the legal system and extract fraudulent seven-figure settlements from reputable trucking companies.
The bill establishes criminal penalties targeting not only the drivers who orchestrate the collisions, but also attorneys, physicians, and other co-conspirators who knowingly participate in the schemes. It also seeks to close existing legal loopholes and provide federal law enforcement with stronger tools to dismantle similar operations.
“The frivolous lawsuits these rapacious individuals file against honest trucking companies contribute to soaring insurance premiums and raise costs for consumer goods.” – Henry Hanscom
Industry Support
“Florida’s trucking industry doesn’t just move freight—it also bears the cost of organized fraud. Staged crashes put innocent motorists and professional truck drivers at risk, while driving up insurance costs for carriers, businesses, and consumers alike,” said Florida Trucking Association President & CEO Scott Perry. “We appreciate Senator Moody’s leadership in giving law enforcement additional tools to combat these dangerous criminal enterprises.”
Likewise, the American Trucking Associations threw its support behind the 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. The frivolous lawsuits these rapacious individuals file against honest trucking companies contribute to soaring insurance premiums and raise costs for consumer goods,” said American Trucking Associations Chief Advocacy & Public Affairs Officer Henry Hanscom. “ATA commends Senator Moody for introducing this legislation to close legal loopholes that criminals are exploiting to target America’s hardworking truckers. By establishing clear, enforceable criminal penalties, we can finally put an end to this dangerous and costly practice.”
Organized Settlement Rings
Numerous schemes in recent years have targeted trucking companies, and these sophisticated fraudsters often have ties to organized crime. One such criminal ring exposed in Louisiana was the subject of multiple investigative journalism reports. The saga began when a con artist deliberately crashed into a truck belonging to a third-generation, family-owned trucking business. Eventually, federal investigators unraveled a vast conspiracy involving dozens of “slammers,” “spotters,” and corrupt lawyers who orchestrated numerous operations that targeted multiple companies. In an attempted cover-up, a federal witness was killed.
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.
Companion legislation was introduced in the House of Representatives last year by Congressmen Mike Collins (R-GA) and Brandon Gill (R-TX).
