Leave the Fraud on ‘Law and Order’

Okay, I admit it: I’m a “Law and Order” junkie. The long-running television show’s reruns are in heavy rotation on the TNT network and I think I’ve seen every ripped-from-the-headlines episode from past seasons a gazillion times.

So, was I ever thrilled when two FBI agents from New York City showed up to speak at the fraud symposium held recently by the Texas Department of Insurance. Their presentation centered on the involvement of New York City-based Russian organized crime rings in bilking billions from the insurance industry via staged auto accidents. It was a storyline straight out of “Law and Order.” Or would that be vice versa? Whatever. Needless to say the presentation had the attention of this armchair prosecutor for the full hour and a half.

There is a large population of Russian immigrants in New York and the agents explained that the great majority are law-abiding residents. However, the criminal element within the Russian community is apparently adept at working the system to its advantage. The agents said this group of Russians views the United States as one big “candy store” because of our open form of government and trusting attitudes.

The Russians control the whole fake auto accident scam from beginning to end. They are experts at manufacturing and marketing fake credit cards and fake IDs–like passports and Visas–that criminals use to get “valid” drivers’ licenses. They also control the lawyers, medical clinics, auto body shops and insurance adjusters that go into action after one of these low-impact “accidents” is staged. The agents said because of New York’s no fault insurance laws staged auto accident scams generate $1 billion in insurance fraud yearly in New York alone, mostly through medical billings but also via property coverage as well.

And folks, if it’s not there already, this scheme may be coming very soon to a city near you. The agents warned that criminally disposed Russians have discovered there is life west of the Hudson River. Some of the bigger cities across the United States have experienced an increase in this type of fraudulent activity.

To be fair to other immigrant communities and native-types as well, the FBI agents said there’s plenty of organized crime being committed in New York (and elsewhere) by representatives of most of the world’s cultures, including homegrown American varieties. It’s just that these particular Russians seem to specialize in low-speed auto accidents that have the potential of taking insurance companies, and unsuspecting, law-abiding insureds, to the cleaners.

While I enjoy watching crime stories on television, that’s where I want them to remain. The FBI agents said the best their organization can hope for is to make it harder for the bad guys to conduct these scams, not to eliminate the activity altogether. Let’s just hope the FBI’s efforts slow down the western expansion of this type auto accident fraud.

Topics Auto New York Fraud Agencies Russia