11 West Coast fraudsters admit guilt in staged accident scheme
The scammers, hailing from Washington and California, attempted to swindle more than $657,000 from insurers.
Charges ranging from mail and wire fraud to making false statements to the FBI were levied against 11 individuals from Washington and California for participating in staged automobile accidents, or for obstructing official proceedings, according to the U.S. Attorney’s Office, Eastern District of Washington.
The fraudsters have all pleaded guilty to the scheme, which rang up $657,812 in payments from insurance companies, according to the district attorney’s office.
“The number of people and the amount of planning involved in this fraudulent scheme make this crime even more shocking and unacceptable,” Richard A. Collodi, special agent in charge of the FBI Seattle Field Office, said in a release.
Beginning around July 2017 and ending in April 2020, the group staged the accidents and submitted false insurance claims for property damage, wage loss and personal injuries. According to the district attorney’s office, Maria Elena Sanchez used her position as a case manager at a personal injury law firm in Washington to help the group submit fraudulent insurance claims and collect the settlements.
“Staged accidents make our streets dangerous and distract police from responding to legitimate distress calls,” Vanessa R. Waldref, United States attorney for the Eastern District of Washington, said in a release. “Moreover, efforts to hinder federal criminal proceedings will not be tolerated. We will continue to work closely with our federal and state law enforcement, and private industry, partners to investigate fraud schemes.”
According to U.S. Attorney’s Office, seven of the defendants were from Kennewick, Washington, while the remainder hailed from Pasco, Washington, and the California cities of Temecula, La Mesa and El Cajon. Other defendants have been named in an indictment and are awaiting trial.
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