Fraud News Around the Nation

Insurance Fraud, Phony Accidents Alleged in Louisiana Parish

Louisiana State Police say seven people have been arrested and one is wanted in connection with an alleged insurance fraud scheme involving staged traffic crashes in Jefferson Davis Parish.

A state police news release says the investigation began earlier this year. It found that a group of family and friends staged three crashes over five months. The scheme also involved a so-called “jump-in” crash, in which someone falsely claimed to have been in a vehicle at the time of a crash.

Six residents of Jennings and one person from Mamou were arrested Tuesday. All face insurance fraud charges. Some face theft charges. Three face child desertion charges because children were involved in the staged crashes.

A 28-year-old woman from Abbeville remains at large in the case.

Kentucky Farmers Plead Guilty to Crop Insurance Fraud

Two south-central Kentucky farmers have pleaded guilty to crop insurance fraud.

The U.S. attorney’s office says 53-year-old David Manion and 48-year-old Henry Manion of Allen County admitted making false statements and reports on applications for insurance.

The prosecutor’s office said in a news release the defendants made false statements to influence insurance payments of the Federal Crop Insurance Crop. and Producers Agriculture Insurance Co. The release said David Manion also had insurance provided by Rural Community Insurance Services.

The violations occurred between August 2009 and February 2012. The men each admitted intentionally overstating crop damage resulting in losses of more than $1.1 million.

Terms of the plea agreement say prosecutors will recommend sentences at the lowest end of the guideline range and the men will be required to make full restitution.

New York City Officer Burned Car for $34K in Insurance Money

The FBI says a New York City police officer had his Range Rover doused with gasoline and lit it on fire in order to collect $34,000 in insurance money.

Special Agent Jason Wake writes in a complaint unsealed Wednesday that Carlos Becker discussed the 2012 arson in recoded conversations.

He says the 10-year veteran exchanged several phone calls with an accomplice just hours before the ruined car was discovered.

Becker remains in custody following his arrest on mail and insurance fraud charges.

Wake says Becker has also pursued claims for a crashed Audi and a BMW that caught on fire.

His attorney says she has not yet had an opportunity to discuss the charges with her client.

A spokesman for Becker’s union didn’t immediately return a request for comment.