New legislation introduced on Tuesday aims to crack down on staged accidents that target trucking companies.
The Staged Accident Fraud Prevention Act was introduced on April 8 by Representatives Mike Collins and Brandon Gill in response to an uptick in “con artists in passenger vehicles [who] are intentionally colliding with commercial motor vehicles to file frivolous lawsuits.”
If passed, the bill would make it a federal crime to intentionally stage a crash, establishing “clear, enforceable criminal penalties for those who stage these collisions, as well as the attorneys, physicians, and other co-conspirators who knowingly participate in this fraud.”
The bill establishes fines and prison sentences for staging crashes, including a sentence of “not less than 20 years” for intentionally causing a collision that results in serious bodily harm.
“Criminal elements are launching an assault against America’s truckers, in the courtroom and on our roads. Staged accidents take advantage of truckers’ high insurance coverage and make them prime targets for criminals looking for a quick payday, saddling truckers with millions of dollars in inflated damages, increasing insurance premiums for all Americans, and driving up the costs for every transported good,” said Rep. Mike Collins. “The Staged Accident Fraud Prevention Act will hold these fraudsters and their co-conspirators accountable and stop the ‘nuclear verdicts’ that are bankrupting truckers across the country.”
“I’m proud to co-lead the Staged Accident Fraud Prevention Act with Rep. Mike Collins, because protecting truck drivers from criminal fraud is essential to keeping our highways safe and our economy moving. With Texas being a critical freight corridor for our entire economy, we must send a clear message: staging a crash with a commercial vehicle isn’t a payday—it’s a federal crime,” said Rep. Brandon Gill.
The bill was written in part in response to a wide-ranging scheme carried out in New Orleans to stage crashes with commercial vehicles in order to make fraudulent insurance claims and file fraudulent lawsuits. More than 60 people have been charged or pleaded guilty as part of a federal investigation into the staged crashes.
The bill is endorsed by:
- The American Trucking Associations (ATA)
- Owner-Operator Independent Drivers Association (OOIDA)
- Truckload Carriers Association
- Georgia Motor Trucking Association
- Texas Trucking Association
“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. These unscrupulous individuals perpetuate their selfish actions by filing frivolous lawsuits against honest trucking companies, raising costs for consumer goods and contributing to soaring insurance premiums,” said American Trucking Associations Senior Vice President of Legislative Affairs Henry Hanscom. “ATA commends Congressmen Mike Collins and Brandon Gill for introducing the Staged Accident Fraud Prevention Act, which would close legal loopholes that criminals are exploiting to attack America’s hardworking truckers. By establishing clear, enforceable criminal penalties that apply to all of the conspirators involved in staged collisions, we can finally put an end to this dangerous and costly practice.”
“Staged accidents are not victimless crimes. These are calculated, premeditated assaults that endanger lives, destroy livelihoods, and compromise highway safety. To add insult to injury, criminals abuse the legal system for profit through false accusations and lawsuits, which contribute to skyrocketing insurance premiums for small trucking businesses,” said Lewie Pugh, Executive Vice President, Owner-Operator Independent Drivers Association. “OOIDA and our 150,000 members support Representative Collins and his commonsense legislation to protect law-abiding truckers from sophisticated criminal fraud schemes that exploit the hardworking men and women behind the wheel.”
