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Philadelphia Insurance Fraud and Staged Car Accident Scheme

The thought of anyone staging an auto accident is quite shocking, especially if the intention is to deprive others of the financial assistance that insurance is supposed to provide. Car accidents in Philadelphia and throughout Pennsylvania take place frequently enough due to negligent motorists and for various other reasons without adding those running insurance schemes in the mix.

According to the Associated Press, a man has been sentenced to serve 4 to 10 years in prison for running an insurance fraud scheme that accumulated over $1 million. The man will also have to pay $440,000 in restitution to 17 insurance companies for the money he wrongfully cost them.

The man pleaded guilty to 44 counts of insurance fraud, 43 counts of theft, and other related charged. Over 116 people have been arrested for involvement in the insurance fraud scheme. Authorities have recognized that several staged vehicle accidents were created so that two cars were involved. This was done in order to heighten claim and settlement potentials by having six claimants per staged collision.

The article did not mention how many people suffered injuries as a result of these staged car accidents.

Michael Monheit

Michael Monheit is the managing lawyer at Monheit Law, outside Philadelphia, Pennsylvania. He has practiced law since 1989. Michael Monheit was the managing attorney of the law offices of Herbert Monheit — now Silverman and Fodera — a firm...


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