13 Arrested in California Staged Accident Scam

July 1, 2014

More than a dozen people have been arrested for allegedly staging car crashes or submitting phony accident claims in a California insurance fraud scheme.

The state Department of Insurance says the scam, centered in Riverside County, netted more than $300,000 from seven insurance companies.

The alleged ringleader, 22-year-old Joel Paredes, was arrested Wednesday.

Prosecutors claim the Indio body shop owner offered friends and family $500 each to file claims for car crashes that were either staged or never occurred. He faces up to 80 years in prison if convicted on all fraud counts.

Paredes remains jailed and it’s unclear whether he had an attorney.

Authorities say 19 people were involved in the scheme and all but six are under arrest. Three others are expected to surrender.

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