Two L.A. Attorneys Caught in “Operation Big Fish”

Two attorneys have pleaded no contest for their involvement in an extensive auto insurance fraud ring. “Operation Big Fish,” as it is being called, involved a 12-month long investigation concerning 16 different agencies.

According to The Downey Patriot, the fraud ring consisted of at least nine insurance companies being deceived by claims of staged accidents from more than 300 people who collectively obtained more than $450,000. Beverly Hills attorney Leon Rubin and San Fernando Valley attorney Stephen Marshall Weiss were among the two main offenders. Rubin and Weiss are also believed to be associates of Alexander Gutman, of Sherman Oaks, who has supposedly collected millions of dollars by staging about 2,600 “paper accidents” between November of 2002 and January of 2008, all with the help of his friend, Van Nuys resident Laszlo Bango.

“Under the terms of a negotiated settlement, Laufer and Weiss have jointly paid more than $145,000 in restitution to nine insurance companies that were defrauded through false claims for staged accidents” 

In May of 2008 Gutman and Bango were arrested by investigators for their involvement with a complex system of attorneys, chiropractors, doctors and body shops that worked together to process claims for bogus accidents. And prosecutors said that of the 80 people charged in connection with this case, 73 have pleaded, and more than $540,000 has been collected in restitution.

Laufer pleaded to one felony count of reckless disregard for accepting illegal referrals while Weiss pleaded no contest to one felony count of insurance fraud. Both were sentenced to three years probation and ordered to perform 250 hours of community service.

Gutman pleaded guilty in February of 2009 to 15 counts of insurance fraud and was expected to be sentenced this week.

Bango pleaded guilty to 4 counts of insurance fraud. According to prosecutors, his sentence is pending.