Oscar Luis Franco Padron was sentenced in West Palm Beach, Florida on charges of conspiracy to commit mail fraud, conspiracy to commit money laundering, and conspiracy to structure financial transactions for his role in a staged accident fraud scheme.
He now faces 96 months in prison, then three years of supervised release, and $4,351,082.13 in restitution. The sentence sends a harsh message to perpetrators of insurance fraud in Florida and around the country.
Padron and others would recruit car owners who had car insurance from certain companies to participate in staged accidents. Padron and his associates referred to the person who caused the accident at the perro, and the alleged victim was the perra. The scheme would also include the driver's friends or family, using Florida's no-fault PIP system.
The members of the crime ring coached the participants on how to carry out the accident, what to say to law enforcement, and what types of injuries to claim. After the accidents, the defendants sent the participants to chiropractic clinics run by people who have also faced charges in the scheme. Together the participants and the clinics falsified paperwork about the type and treatment of injuries that was then submitted to the insurance company. Padron was also found guilty of evading the $10,000 currency transaction-reporting requirement when converting the scheme's mail fraud profits into cash.
A number of others have been sentenced for their part in the fraud scheme, including Joaquin Ross, Aureliano Diaz, Lisbet Leon, Yida Bello, Gloria Cintron, Veronica Riofrio, Ketty Gonzalez, Ernesto Miralles, Julio Fernandez Delgado, and Zachary Keith Stuhler. Padron is the highest-ranking member of the team to face sentencing thus far.
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