Governor Hochul and Queens County District Attorney Melinda Katz Announce Sentencings for Conspirators of Staged Car Crashes on New York City Highways

Governor Kathy Hochul and Queens District Attorney Melinda Katz announced today the sentencing of 53-year-old Jaime Huiracocha and 34-year-old Victor Murillo, both of Brooklyn. The two were found guilty of charges related to staging three crashes on New York City highways and seeking fraudulent insurance payouts for damages and injuries. The investigation was conducted by the NYPD with the assistance of investigators from the New York State Department of Financial Services (DFS).

At today's announcement, Governor Hochul also highlighted the major reforms she fought for and secured earlier this year - to help lower costs for millions of New Yorkers by cracking down on the fraud that has been driving up auto insurance premiums for far too long.

"Today we're sending a message to would-be-fraudsters everywhere: If you stage crashes, try to defraud or endanger New Yorkers, you will be held accountable," Governor Hochul said. "This kind of reckless, illegal behavior has been driving up auto insurance costs for millions of New Yorkers for far too long. By cracking down, we're not just getting dangerous criminals off our roads, we're putting money back into the pockets of everyday drivers."

Under Governor Hochul's leadership, New York State is committed to combatting insurance fraud and reducing vehicle insurance premiums. The FY 2027 enacted budget included sweeping reforms to address fraudulent claims and staged accidents that have contributed to elevated auto insurance costs for New York families.

This includes:

• Enabling prosecutors to seek criminal penalties against any individual responsible for organizing a staged accident, not just the driver
• Capping damages for those engaging in unlawful behavior at the time of an accident
• Tightening the statutory definitions to clarify what constitutes a 'serious injury,' reserving damages for those able to objectively demonstrate that they've suffered a serious injury
• Limiting damages for individuals who are mostly at fault for an accident
• Applying stringent oversight on insurance company rates
• Prohibiting insurance companies from setting rates based on extraneous personal factors such as homeownership status, education or zip code.

DFS issued guidance to implement these reforms in July. Under Governor Hochul, DFS has transformed its approach to combating financial fraud by rebuilding and modernizing its Insurance Frauds Bureau, including through hiring new leadership and experts, investing in modern technology solutions, securing essential resources and strengthening partnerships with law enforcement statewide. In July, DFS partnered with the New York State Police to provide specialized training to hundreds of law enforcement partners to enhance investigations.

Queens District Attorney Melinda Katz said, "Staged auto collisions not only terrify the drivers who are targeted, they put other motorists at risk and ultimately lead to increased insurance costs for all New Yorkers. Thanks to a brave victim who came forward with dashcam video, and an investigation by my Financial Frauds Bureau with our partners at the NYPD and New York State Department of Financial Services, we secured convictions against two defendants who orchestrated three crashes. I thank Governor Kathy Hochul for being a nationwide leader on the issue of insurance fraud and enacting a series of reforms that will help prosecutors bring more cases and save New Yorkers money."

New York State Department of Financial Services Acting Superintendent Kaitlin Asrow said, "Insurance fraud leads to higher costs for all drivers and is a strain on New York's insurance system. Fraud enforcement is part of DFS's continued work to enact Governor Hochul's comprehensive plan to lower insurance costs for New Yorkers. I thank the Governor, Queens District Attorney, and the New York Police Department for their partnership."

Huiracocha pleaded guilty in May to insurance fraud in the third degree and conspiracy in the fifth degree. Queens Supreme Court Justice Jerry Iannece sentenced him to one to three years in prison on the first charge and one year in jail on the second charge, to run concurrently.

Murillo pleaded guilty to staging a motor vehicle accident in the second degree, insurance fraud in the fourth degree and conspiracy in the fifth degree. Justice Iannece sentenced him to two years in prison on the first two charges and one year of incarceration on the third charge to be served concurrently.

According to investigators, between August 24, 2024, and October 16, 2024, Huiracocha and Murillo conspired to stage car crashes on New York City highways as part of an insurance fraud scheme. The defendants recruited individuals to participate in three separate car crashes and enticed them with promises of cash payouts of thousands of dollars.

Murillo acted as the designated driver for these crashes. During each of the staged collisions, the defendant suddenly and deliberately stepped on the brakes of the car he was driving, causing the vehicle behind him to rear end the car he was operating. In one instance, when the car behind him braked in time to avoid a collision, Murillo reversed into that vehicle and caused a crash.

During the staged crashes, Huiracocha drove in a separate vehicle and trailed Murillo on the highway and directed him on exactly when and how to stage the collisions. After the crashes, Murillo climbed into the front passenger seat of each vehicle and exited the car from the passenger side. His actions were obscured by passengers in the back seat who covered the rear window with a tarp or plastic bag.

Murillo then fled the scene each time in a getaway car that had pulled in front of the car he drove. In the three collisions, the remaining occupants of Murillo's car exited the vehicle and pretended to be injured. The occupants were directed by Huiracocha to visit specific medical clinics after the crashes.

The staged crashes occurred on the following dates:

• On August 24, 2024, at approximately 8 a.m., a 47-year-old woman from Long Island was driving westbound on the Belt Parkway near the Erskine Street exit. A silver Honda Civic driven by Murillo merged into the lane directly in front of her and stopped, forcing her to collide with the car. Dashcam footage from the victim's car captured Murillo exiting the Honda and entering a red Kia that had stopped directly in front of it after the crash.
• On October 3, 2024, at approximately 12 p.m., a 44-year-old man from New Jersey was driving his tractor trailer in the middle lane of the Nassau Expressway near Cross Bay Boulevard in Lindenwood. A Nissan Xterra, driven by Murillo, suddenly cut into the middle lane directly in front of the truck. The truck driver was unable to avoid hitting the Nissan. Murillo got out of the Nissan, entered another vehicle that had stopped in front of him, and then quickly left the scene. At the same time, a female claimed to the truck driver that she had been the one driving the Nissan during the collision. After the getaway car drove off with Murillo, another car stopped at the scene. Huiracocha exited and spoke to the truck driver.
• On October 16, 2024, at approximately 12 p.m., a 31-year-old woman from Queens was driving north in the left lane of the Belt Parkway in Rosedale near the Nassau County border. A Honda Civic driven by Murillo cut in front of the woman's vehicle and abruptly came to a stop. The victim was forced to step on her brakes to avoid a collision. Murillo then quickly reversed the Honda and backed into the victim's vehicle, damaging both her car and the Honda. Dashcam footage showed not only the collision, but also a red Kia Sportage following the woman's car. After the crash, the Kia stopped in front of the Honda. Murillo, who climbed to the front passenger's seat, exited the Honda from that side. He then entered the Kia and was driven away from the scene.

Defendants Maikel Martinez and Ivon Matus-Martinez, alleged participants in the crashes, also pleaded guilty and are expected to be sentenced next month.

Assemblymember David Weprin said, "Staged collisions are not only insurance fraud - they are dangerous crimes that deliberately put innocent motorists and families at risk. As Chair of the Assembly Insurance Committee, I know that this fraud also drives unnecessary costs into our insurance system, costs that are ultimately borne by honest New Yorkers. I commend Queens District Attorney Melinda Katz, Governor Hochul and our law enforcement partners for taking these schemes seriously and holding those responsible accountable. We must continue working together to combat fraud, protect motorists, and make auto insurance more affordable for New Yorkers."

Anyone who thinks they may have been a victim of insurance fraud is urged to call the Insurance Fraud Hotline at 888-372-8369 or visit dfs.ny.gov/consumers to file an online report.