Ashley Moody bill would increase penalties for staging bogus wrecks with commercial vehicles

U.S. Sen. Ashley Moody is proposing legislation that would increase penalties for motorists who fake accidents seeking to get money from bogus insurance claims.

Moody introduced the Staged Accident Prevention Act this week. The measure would established federal criminal penalties for anyone intentionally staging a wreck with a commercial vehicle. Moody acknowledged that the bill is largely aimed at stopping people from taking advantage of commercial trucking operations.

“With over 450,000 trucking jobs in Florida, it is safe to say that truck drivers keep the economy moving. 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,” Moody said in a press release.

“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.”

Moody said that despite an increase in staged accidents across America, there aren’t many states that are proposing measures to address the bogus claims. She singled out several fake claims in Louisiana, where scammers caused dozens of intentional crashes with 18-wheel semitractor-trailer rigs in the course of five years.

An FBI probe found personal injury lawyer Danny Patrick Keating committed fraud. After pleading guilty to conspiracy charges, Keating acknowledged he paid Damien Labeaud to set up 31 fraudulent accidents. Labeaud cooperated with federal government investigators probing the conspiracy.

Moody’s bill would not only increase penalties for those staging accidents with commercial vehicles, it would hold responsible lawyers, physicians and anyone else helping in the fraudulent claims.

Officials with the Florida Trucking Association are relieved to see Moody pursuing the legislation.

“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 and CEO Scott Perry.

“We appreciate Senator Moody’s leadership in giving law enforcement additional tools to combat these dangerous criminal enterprises.” 

Republican U.S. Reps. Mike Collins of Georgia and Brandon Gill of Texas are introducing a similar bill in the House.