State Farm appraisers Jeremazine Kirkland and Julio Ravelo face similar charges, according to authorities.

Affidavits said the arrests, which took place late last month, stem from a previous investigation by the Hialeah Police Auto Theft Unit, Miami-Dade Auto Theft Task Force and National Insurance Crime Bureau (NICB). Authorities said an owner of an auto body shop provided them with information and wore a recording device, which led to the arrests of the adjusters and appraisers.

The group of insurance employees allegedly conspired with Jose Diaz, owner of High Performance Auto Services, Inc., to make false claims totaling about $5 million, authorities said.

Authorities said the adjusters and appraisers would allegedly inflate damage and labor claims at the repair center. The conversations with Mr. Diaz were recorded, according to the arrest affidavits.

Ironically, most of the men arrested allegedly expressed fear they were being monitored by their employers, or that they were falling for a set-up, according to the arrest affidavits.

At one point Mr. Ravelo allegedly told Diaz to get inside his State Farm vehicle because "they could be watching him." Later he allegedly told Diaz to be careful because "the insurance industry is watching everybody."

The NICB earlier this year said the number of suspicious auto accidents that were staged or deliberately caused in Florida has increased 58 percent from 2008 to 2009 in an attempt by criminals to take advantage of the state's no-fault auto accident coverage. The fraud was known to be present in South Florida but the study by NICB showed more attempts of the stage-accident fraud in Tampa, Fla.

Recently in Florida, the Hillsborough County Sherriff's Office, with the help of the NICB, charged 10 people with racketeering. Authorities said employees at the Medical Rehab Choice, LLC, in Tampa were allegedly recruiting people to take part in staged accidents.