COURT EXPOSES MASSIVE STAGED CAR ACCIDENT RING IN NYC AREA – TEXTBOOK FRAUD SCHEME DRIVING UP INSURANCE COSTS FOR NEW YORKERS
Ruling Lays Bare How Organized Auto Insurance Fraud Jacks Up Premiums for Everyone – Illustrating Need for Gov. Hochul’s Reform Plan
NEW YORK — In a sweeping decision, a metro area judge dismissed eight staged auto accident claims, exposing an organized fraud ring that targeted New York’s No-Fault insurance system and contributed to higher car insurance costs for law-abiding drivers.
The ruling comes at a pivotal moment as Governor Kathy Hochul proposed a reform plan that directly targets the very tactics exposed in this case – staged car accidents, insurance fraud, and litigation abuse – which have been identified as key contributors to New York’s auto insurance affordability crisis in recent reports by the Insurance Information Institute (Triple-I), the Chamber of Progress, and the Partnership for New York City.
In the civil case, Integon v. Salazar-Ochoa, Suffolk County Supreme Court Justice Maureen T. Liccione ruled that the insurer was not responsible for claims tied to what the court found to be a coordinated scheme involving “junker” cars, commercial box trucks, and a network of over 100 medical providers. The decision offers a rare and detailed look at how organized auto insurance fraud directly contributes to New York’s skyrocketing high insurance premiums.
“...Insurance fraud is not a victimless crime. Because premium increases partly incorporate fraud costs, insurance fraud hurts all policyholders, not just insurers,” wrote Justice Liccione in her decision.
“This case shows exactly how fraud rings exploit New York’s no-fault insurance system and stick law-abiding drivers with the bill,” said former NYC Taxi & Limousine Commissioner Matthew W. Daus. “Staged crashes, fake medical claims, and legal manipulation don’t just hurt insurers – they raise costs for every New Yorker. Governor Hochul’s reform plan is designed to stop this exact kind of abuse.”
Textbook Fraud Factory
According to the court’s decision and filings, all eight dismissed claims shared strikingly similar “red flags” consistent with an organized fraud operation:
The “Script”: All eight accidents involved three occupants per vehicle, occurred in the same area of Queens, and took place immediately after a policy was issued – but before any premiums were paid.
The Facilitators: Alleged ringleaders Ruth Rodriguez Moran and Carolina Moran are accused of selling high-mileage “junker” vehicles used specifically for the staged crashes.
Strategic Targets: Vehicles were intentionally rear-ended by box trucks or commercial vehicles to maximize potential payouts.
The “Fraud Mill”: Over 100 healthcare providers were named in the lawsuit. The court noted that treatment was routed through just two medical offices and nearly all claimants used the same attorney to generate thousands of dollars in bogus billing.
The Brokerage: Policies were issued via Mansi International LLC and canceled for nonpayment immediately after the accidents.
The Smoking Gun for Reform
Fraud schemes like the one detailed in the Integon case are a primary driver of why New York premiums are nearly double the national average. Governor Hochul’s auto insurance reform proposal seeks to address these exact problems by:
Criminalizing Staged Accidents: Granting prosecutors new authority to seek criminal penalties against the organizers of these rings.
Ending No-Fault Abuse: Strengthening the state’s ability to disqualify and penalize medical providers who participate in fraudulent billing schemes.
Closing Legal Loopholes: Updating outdated legal standards that repeat bad actors use to exploit the system.
“This ruling makes clear that insurance fraud and litigation abuse aren’t abstract problems – they’re real cost drivers for New York families,” added Daus. “When a single fraud ring can coordinate eight crashes and involve over 100 providers, it’s clear the system is broken. Lawmakers must move swiftly to support Governor Hochul’s plan to rein in these abuses and lower car insurance costs statewide.”
About Citizens for Affordable Rates (CAR)
Citizens for Affordable Rates (CAR) is a coalition of citizens, advocates, and organizations dedicated to tackling the root causes of high costs in New York. Through advocacy, education, and policy reform, CAR is committed to building an affordable and dependable system for all New Yorkers. For more information, visit: www.citizensforaffordablerates.com