Texas Staged Accident Scam Leads to 9 Years Prison, $5M Restitution Award

A Dallas-area man has been sentenced to nine years in federal prison for running a staged traffic accident insurance scam since 2005.

Leroy Nelson of DeSoto must also repay nearly $5 million as part of sentencing announced Tuesday.

The 61-year-old Nelson in March pleaded guilty to mail fraud and to engaging in illegal monetary transactions.

Prosecutors in Dallas say drivers made false insurance claims in return for cash payments in schemes guided by Nelson through 2012. He set up private mailboxes in Minnesota, Missouri, Washington, Arizona, Connecticut and Louisiana to get insurance checks, then had the mail forwarded to him in Texas.

Nelson must also forfeit several vehicles, a motor home, a boat and trailer and real estate in Texas.