Gretchen Hoffman
At least three Glendale residents have been arrested in an
undercover investigation and surveillance of a suspected insurance
fraud ring, officials said.
Investigators with a Los Angeles County-organized auto-fraud task
force arrested 28 people on Tuesday morning, and more arrests are
pending. No names or locations are being disclosed because the task
force is still tracking additional suspects, investigators said.
The alleged insurance fraud ring is suspected of staging
fraudulent collisions to collect settlements from insurance
companies.
"Cappers" or "stagers" recruited people to participate in the
staged crashes, file false insurance claims, seek medical treatment
for nonexistent injuries and demand settlements from insurance
companies.
Undercover agents from the California Department of Insurance and
the California Highway Patrol infiltrated the ring and took part in
the staged accidents.
In one encounter, a main suspect boasted there was so much
business staging accidents in the San Fernando Valley that it was
"out of control."
Undercover agents are still working with the alleged ring, and an
additional arrest was expected late Tuesday of a Glendale resident,
which would bring the total to four arrests in the city.
Search and arrest warrants were issued for homes, chiropractic
offices and a car- repair business around the county, including
Glendale and Burbank.
"Although there are suspects, no doctors or lawyers were charged
at this time," Chief Investigator with the Department of Insurance
Henry Avina said.
"We believe today's arrests are just the beginning."
The group is suspected of having staged hundreds or thousands of
collisions.
