Senator Moody Introduces Staged Accident Fraud Prevention Act to Protect All Drivers on our Roads and Prevent Con Artists from Driving up the Cost of Insurance

WASHINGTON, D.C.-Today, Senator Ashley Moody introduced the Staged Accident Fraud Prevention Act, legislation that would extend criminal penalties to make intentionally staging an accident with a commercial motor vehicle a federal crime.

"With over 450,000 trucking jobs in Florida, it is safe to say that truck drivers keep the economy moving. Unfortunately, there are crazed and dangerous fraudsters out there who would rather put people's lives in danger for a quick payday instead of making an honest living putting in a hard day's work. Anyone who stages or helps stage an accident with a commercial motor vehicle endangers people's lives and livelihoods. On top of that, these stunts run up insurance premiums for everyone. Unacceptable. This legislation sends a clear message: if you do this, you will be prosecuted," said Senator Ashley Moody.

American Trucking Associations: "When con artists seeking a big payday intentionally collide with commercial motor vehicles, their reckless disregard for safety puts innocent truck drivers and the motoring public at risk. The frivolous lawsuits these rapacious individuals file against honest trucking companies contribute to soaring insurance premiums and raise costs for consumer goods," said American Trucking Associations Chief Advocacy & Public Affairs Officer Henry Hanscom. "ATA commends Senator Ashley Moody for introducing the Staged Accident Fraud Prevention Act, which would close legal loopholes that criminals are exploiting to target America's hardworking truckers. By establishing clear, enforceable criminal penalties, we can finally put an end to this dangerous and costly practice."

Florida Trucking Association: "Florida's trucking industry doesn't just move freight-it also bears the cost of organized fraud. Staged crashes put innocent motorists and professional truck drivers at risk, while driving up insurance costs for carriers, businesses, and consumers alike," said Florida Trucking Association President & CEO Scott Perry. "We appreciate Senator Moody's leadership in giving law enforcement additional tools to combat these dangerous criminal enterprises."

U.S. Chamber of Commerce: "Staged accidents are a dangerous and costly crisis that is threatening public safety and household budgets across America," said President of the U.S. Chamber of Commerce's Institute for Legal Reform Stephen Waguespack. "Senator Moody's leadership on the Staged Accident Fraud Prevention Act builds on the momentum to put a stop to these organized crime rings that specifically target trucking businesses."

Independent Insurance Agents & Brokers of America: "The Independent Insurance Agents & Brokers of America applauds Senator Moody for introducing legislation to crack down on staged accidents that endanger motorists, disrupt supply chains and fuel lawsuit abuse. This commonsense measure will help deter insurance fraud, reduce unnecessary litigation costs and ease the pressure of rising insurance premiums on responsible commercial operators and consumers nationwide," said IIABA SVP of Federal Government Affairs Nathan Riedel.

Owner-Operator Independent Drivers Association: "Staged accidents are not victimless crimes. These are calculated, premeditated assaults that endanger lives, destroy livelihoods, and compromise highway safety. To add insult to injury, criminals abuse the legal system for profit through false accusations and lawsuits, which contribute to skyrocketing insurance premiums for small trucking businesses," said Lewie Pugh, Executive Vice President, Owner-Operator Independent Drivers Association. "OOIDA and our nearly 150,000 members support Senator Moody and her commonsense legislation to protect law-abiding truckers from sophisticated criminal fraud schemes that exploit the hardworking men and women behind the wheel."

National Tank Truck Carriers: "Staged accidents are deliberate criminal acts that put professional drivers, the motoring public, and our nation's supply chain at risk. Tank truck carriers operate the safest and most highly regulated vehicles on the road, yet they remain attractive targets for fraud schemes that exploit the legal system while driving up insurance costs for carriers, shippers, and ultimately consumers. The National Tank Truck Carriers strongly supports the Staged Accident Fraud Prevention Act because it establishes meaningful federal penalties to deter these dangerous crimes and hold everyone involved in these fraudulent schemes accountable. We commend Senator Ashley Moody for introducing this important legislation in the Senate, as well as Representatives Mike Collins and Brandon Gill for leading its introduction in the House. Their leadership will help protect hardworking truck drivers, strengthen highway safety, and combat the costly fraud schemes that threaten our industry," said National Tank Truck Carriers President & CEO Ryan Streblow.

Truck Renting and Leasing Association: "The Truck Renting and Leasing Association (TRALA) supports and endorses the Staged Accident Fraud Prevention Act. The ever-increasing use of these staged accidents not only cause disruptions, endanger lives, and harm highway safety, but they are also a contributing factor to the out-of-control lawsuit abuse that occurs due to these bad actors, leading to increased insurance costs and a disruption in the supply chain for all Americans," said TRALA President & CEO Jake Jacoby. "We applaud Congressman Mike Collins and Senator Ashley Moody for their leadership in tackling this critical commonsense issue and our members - who represent approximately 30% of all newly purchased commercial over-the-road trucks and tractors - stand ready to support this legislation and have it enacted into law."

American Bus Association: "The American Bus Association is proud to support the Staged Accident Fraud Prevention Act," said Fred Ferguson, President and CEO of the American Bus Association. "ABA applauds Senator Ashley Moody for leading this important effort in the Senate, building on the leadership of Representatives Mike Collins and Brandon Gill in the House. Staged collisions are deliberate criminal acts that endanger professional drivers, motorcoach passengers, and everyone else on the road. Beyond the immediate safety risks, these schemes fuel fraudulent insurance claims, increase litigation costs, and contribute to the rising insurance premiums that continue to challenge responsible motorcoach operators nationwide. By providing federal law enforcement with another tool to investigate and prosecute those who intentionally target commercial vehicles, this legislation will help protect the traveling public, strengthen accountability, and support the safe, reliable transportation services that millions of Americans depend on every year."

National Motor Freight Traffic Association: "The trucking industry cannot afford to let staged accident schemes continue putting professional truck drivers, motor carriers, and the motoring public at risk. NMFTA strongly supports the Staged Accident Fraud Prevention Act and commends Senator Ashley Moody as well as Representatives Collins and Gill for leading this effort to hold those responsible criminally accountable. By targeting organized fraud at its source, this legislation represents a critical step toward safeguarding our nation's freight network and the millions of Americans who depend on it every day," said NMFTA Chief Operations and Technical Officer Joe Ohr.

International Warehouse Logistics Association: "Staged accidents are not simply fraudulent insurance claims - they are deliberate criminal acts that put drivers, passengers, and the public at risk. The Staged Accident Fraud Prevention Act would provide a strong federal deterrent against these dangerous schemes and help protect the hardworking men and women who keep our nation's supply chain moving. IWLA thanks Senator Moody for bringing this important legislation to the Senate and urges Congress to advance this commonsense measure," said IWLA President & CEO Jay Strother.

National Association of Mutual Insurance Companies: "Every day, staged accidents and fraudulent schemes put innocent lives at risk and raise costs for every American. The Staged Accident Fraud Prevention Act will help coordinate law enforcement in combatting these sophisticated crime rings and bring the weight of federal law to stopping them. NAMIC commends Senator Moody for her leadership on this issue and for working to lower costs and make Americans safer on our roads and highways," said NAMIC Senior Vice President of Federal & Political Affairs Jimi Grande.

International Foodservice Distributors Association: "Staged accidents are a growing threat to the drivers who move our nation's food supply and to the businesses that depend on them. IFDA is proud to support the Staged Accident Fraud Prevention Act," said Mala Parker, Senior Vice President of Government & Public Affairs. "Thanks to Senator Moody for championing this commonsense measure to hold bad actors accountable. These staged collisions have resulted in escalating insurance premiums and fueled the rise of so-called nuclear verdicts, both of which lead to higher costs for consumers. The nation's foodservice distributors, and the customers who count on them, deserve nothing less than the passage of this legislation."

Transportation Intermediaries Association: "Staged accidents are fraudulent schemes that hit brokers and carriers alike, and the criminals responsible drive up costs for everyone in the supply chain, which represents the $343 billion third-party logistics industry. "TIA fully supports the Staged Accident Fraud Prevention Act, which takes concrete steps to crack down on fraud and hold these bad actors and their co-conspirators accountable - and in doing so, will keep the traveling public safe and bolster supply chain resilience," said President & CEO Chris Burroughs.

The Staged Accident Fraud Prevention Act is also supported by:

• Associated Industries of Florida
• Truckload Carriers Association
• Georgia Motor Trucking Association
• Texas Trucking Association
• American Property Casualty Insurance Association
• American Tort Reform Association

BACKGROUND:

• Despite an increase in staged truck accidents, few states have taken action to combat staged accident fraud schemes.
• A notable example of this staged fraud occurred multiple times in Louisiana, where scammers over the course of 5 years caused dozens of intentional crashes with 18 wheelers.
  • Following an FBI investigation into these kinds of accidents, Danny Patrick Keating, a personal injury attorney, pleaded guilty to conspiracy to commit wire fraud. Keating admitted to paying another cooperating government witness, Damien Labeaud, to stage 31 accidents.
  • Keating told investigators he represented 77 plaintiffs in subsequent lawsuits. Federal authorities say such fake crashes predominantly took place in New Orleans East and Gentilly, often close to one truck stop.

• Florida is one of the nation's largest freight hubs, supporting more than 460,000 trucking industry jobs and over 130,000 trucking companies.
• The Staged Accident Fraud Prevention Act would:
  • Make intentionally staging a collision with a commercial motor vehicle a federal criminal offense.
  • Establish criminal penalties for individuals who organize or participate in staged crashes
  • Hold attorneys, physicians, and other co-conspirators accountable if they knowingly participate in this fraud.

• This legislation was introduced in the House by Representatives Mike Collins (GA-10) and Brandon Gill (TX-26).
• Read full bill text here.

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