Insurance Crime Bureau Lists Top 10 Cities for Staged Accident Scams

March 10, 2006

  • March 10, 2006 at 4:16 am
    whutnot says:
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    Comes as no surprise to me that three of the top ten cities are located in FL. FL is a haven for fraud.

  • March 10, 2006 at 5:54 am
    Same Here says:
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    A native Californian, and I\’m not surprised that L.A. is #2 on the list; won\’t even go into the possible reasons why …..

  • March 13, 2006 at 11:58 am
    Ralph says:
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    As a private investigator in the south Florida area I am not surprised with this information.
    I have been involved in several of these types of cases which seems to finger out to other cases in workers comp and slip and fall.

  • March 13, 2006 at 1:48 am
    5. Philadelphia says:
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    I remember the first time I heard of someone I knew personally suing someone.
    My boss was suing her best friend because the best friend\’s dog nipped my boss\’ little girl while playing at the best friend\’s house! She had an itty bitty white mark on her precious little nose from the horrible attack.

    This is the same boss whose husband (co-owner)who threw his phone at me and threatened to \”shove that f—ing phone down my f—ing throat the next time I gave him a call like that\” (salesman lied to me about who he was to get put through on the phone).

    I would have quit but in those days, you sometimes paid a fee for a job and did not get it back til you worked there one year. $500. was a lot of money in 1976!

    Hey if that happened today – I would sue like a banshee!

    Now, 30 years later, everyone or someone in their immediately family seems to have a law suit cooking here in the City of Brotherly Love.

  • March 30, 2006 at 1:33 am
    Gary says:
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    Keep your distance. Let the other guy tail gate.

  • March 19, 2008 at 3:00 am
    Russ Hallberg Jr says:
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    Russ Hallberg Jr

    This article is the result of my own research and personal experience. It is to be considered personal opinion.

    I have been exposed to insurance claim money laundering schemes my entire 54 years. I did not comprehend the mechanism until I read published interviews with former Texas Assistant Attorney General, Eric Moebius. The best interview material with Eric Moebius is located at: (Thanks, Mack!) The following article is corroborated by statements from Eric Moebius.

    The Quota System

    The mechanism of insurance claim money laundering is two fold. First, insurance companies’ premium rates are based upon claims history. What you pay for your mandatory automobile liability insurance is based upon the claims history of drivers in your class. The state insurance commissioners determine the rates.

    Relatively stable claims records are in the financial interests of the insurance companies. Wide variations in annual claims payouts would create chaos. Imagine your automobile insurance premiums doubling one year, then dropping by 75% the next!

    Automobile accident rates remain relatively stable from year to year. This particularly applies to fatalities. I was told of a quota system regarding accident fatalities. Suicidal individuals are coerced to make the ultimate sacrifice, ensuring the future prosperity of their beneficiaries. These are often young men, increasing the value of the claim by “years of future earnings lost.”

    Amateur race car drivers are solicited to participate in staged accidents. These involve both fatalities and personal injury. Personal injury accidents are used to bring unwilling subjects into the “system”.

    The quota system applies to health and casualty insurance. Many cases of arson are not prosecuted and are willingly covered up by insurance adjusters. Job security.

    Mutual insurance companies are regulated only by the state insurance commissioners. The insurance commissioners are charged with making certain claims are paid and the insurance companies are financially stable. Mutual insurance companies are owned by the policy holders. By law, premiums paid in excess of claims are to be returned to the policy holders at the end of the year or applied to next year’s premiums. Have you ever received a significant refund from your insurance company? The actual practice is to “dump” excess premiums into overpaid, fraudulent claims.

    Contingency Reserve Account Money Laundering

    Mutual insurance companies are not included in money laundering regulation. It is only assumed that money used to pay claims comes from the premiums of policyholders. This creates an opportunity to launder money from organized crimes with low operating expenses, like embezzlement.

    For example, you may be involved in an automobile accident. The other party was clearly at fault. Your insurance company will create a contingency reserve account to pay your claim. The contingency reserve account covers the maximum expected payout for the claim, including legal expenses. You may receive a $5000 settlement for your claim, while the contingency reserve account held $25,000.

    A friend who worked an insurance office told me about finding two contingency reserve accounts for the same claim. When he asked his boss about this oddity, he was told “We don’t talk about that.”

    In “The Yogurt Shop Murders” at, the victims’ families were awarded nineteen million dollars. Twelve million disappeared from the accounts of the Yogurt Shop holding company that same day. The money could only be applied to an insurance settlement check through a clandestine, illegal transfer of money.

    These illegal transfers of money into contingency reserve and insurance claim accounts happen every day, in my opinion. There is no regulatory agency “minding the store”.

    Eric Moebius and I also believe there is a multiplier affect to contingency account money laundering. The contingency reserve account may be used as a conduit, allowing dirty money to pass through the account with no trace of its origin. Without regulation and auditory oversight of the accounts, anything is possible. The $25,000 contingency reserve account may be open for a couple of years before you receive your $5000 settlement. $250,000 in dirty money may have passed through the account during that time.

    How dirty is this money? The killers were on site at the Yogurt Shop Murders for 47 minutes. The victims were four attractive teenage girls. The autopsies revealed three of the victims were sexually active, or raped, at the time of their deaths. This would have been a very valuable film, in the snuff movie market I am well aware of.

  • July 14, 2009 at 1:21 am
    jon doe says:
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    I was cruising at 79 on a 2 lane interstate. A team of two cars roared up behind me acting as if they wanted to pass me so i got over to the right lane and she followed behind me then i got back over into the left lane and she followed again so i figured she wanted to ride behind me bc she saw i had a radar detector.. she and another white car behind her sped up and got infront of me and slammed on the brakes i drive a nice car and my brakes are very good so i slammed on mine now we are doing about 60 so i dropped into 3rd gear to get around them doing about 100 and got way ahead of them and here they come to do it again each time the first white car would get over a carlength ahead of me and wave me to come on and pass her which is when i suspected something and when she dropped back even with me i raised my pistol not pointing it at her but showing it to her as to say stop ****ing around with me and leave me alone at that point she dropped back and got parallel with the other white car probly saying something like this is the wrong guy to scam and i never saw them again.

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