The Staged Accident Fraud Prevention Act, introduced by Rep. Mike Collins, R-Ga., and Brandon Gill, R-Texas, aims to crack down on fraudsters who stage truck accidents in order to sue trucking companies for millions of dollars. This legislation, if approved by Congress, would make intentionally staging a crash with a motor vehicle a federal crime.
Under the proposed legislation, individuals operating a motor vehicle who intentionally cause a collision with a commercial motor vehicle, or arrange for another person to do so, could face stiff penalties. This includes fines, imprisonment for up to 20 years, or both. If the collision results in serious injury or death, the prison sentence would be at least 20 years.
In a press release announcing the bill, the lawmakers highlighted the dangers and consequences of staged accidents. They pointed out that these fraudulent collisions not only endanger highway travelers but also drive up insurance costs and can potentially put small owner-operators out of business. The legislation aims to establish clear and enforceable criminal penalties for those who engage in this type of fraud, as well as for attorneys, physicians, and other co-conspirators who knowingly participate in these schemes.
One high-profile case involving staged truck accidents, known as Operation Sideswipe, has been ongoing in Louisiana since 2019. This case has resulted in 63 indictments and sheds light on the extent of this fraudulent activity. These staged accidents not only pose a risk to innocent truck drivers and the motoring public but also lead to frivolous lawsuits that can drive up costs for consumer goods and contribute to rising insurance premiums.
Industry organizations such as the American Trucking Associations and the Owner-Operator Independent Drivers Association have expressed support for the legislation targeting staged crashes. They emphasize the need to protect law-abiding truckers from sophisticated criminal fraud schemes that exploit hardworking individuals in the industry.
Henry Hanscom, senior vice president of legislative affairs at the American Trucking Associations, highlighted the reckless disregard for safety displayed by those who stage these collisions. He noted that these individuals jeopardize the well-being of innocent truck drivers and the public while seeking financial gain through fraudulent lawsuits.
Lewie Pugh, executive vice president of the Owner-Operator Independent Drivers Association, pointed out the detrimental impact of false accusations and lawsuits on small trucking businesses. He emphasized the need to combat criminal fraud schemes that exploit truckers and contribute to the rising insurance premiums faced by the industry.
Overall, the Staged Accident Fraud Prevention Act aims to address a growing problem within the trucking industry and protect honest trucking companies and drivers from the detrimental effects of staged accidents and fraudulent lawsuits. By establishing clear penalties for those who engage in these fraudulent activities, the legislation seeks to deter such behavior and uphold the integrity of the industry.
