A local U.S. representative is leading a push to create a federal task force to combat staged vehicle accident fraud.
Republican Rep. Mike Collins (GA-10) co-signed the letter to U.S. Attorney General Pam Bondi along with six other Republican representatives from Florida, Michigan, Texas and Wisconsin. The letter claimed the issue has been growing in recent years.
"According to the Coalition Against Insurance Fraud, insurance fraud costs the U.S. $308 billion annually," the letter said. "More importantly, these activities put innocent motorists at risk of injury or even death."
While it claimed the fraud has been most prevalent in New York, the letter specifically cited issues in Georgia, pointing out two recent cases where suspects were arrested in the state on allegations of committing the fraud several times.The letter claimed Georgia has seen 63 investigations involving accident fraud against U-Haul vehicles alone since 2014.
It also tied the fraud cases to gang activity and illegal immigration.
"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," the letter said. "It also appears that illegal immigrants are being recruited as part of these schemes, sometimes as a requirement to repay coyotes who helped them cross the border."
The letter called on Bondi to create a specialized task force that would investigate and prosecute such fraud cases. It also called for campaigns to increase public awareness, enforcement and penalties for offenders to deter the fraud.
"Holding these criminal enterprises accountable for their actions will send a signal that the Administration is serious about restoring law and order," the letter said.
The other representatives signing the letter along with Collins are listed below:
- Tom Barrett (MI-7)
- Lance Gooden (TX-5)
- Glenn Grothman (WI-6)
- Kevin Patronis (FL-1)
- Tony Wied (WI-8)
