Fraudulent Claims “Runner” Pleads Guilty

A Maryland man is in deep trouble with the law for conspiring to commit wire fraud during his part of an insurance fraud scheme.

The United States Attorney for the Eastern District of Virginia, Neil H. MacBride, and the Assistant Director in Charge of the FBI Washington Field Office, James W. McJunkin, made the announcement after the plea was accepted by United States District Judge T.S. Ellis III.

According to a Department of Justice Press Release, Kenneth Williams of Silver Spring, MD pled guilty last week to working at defrauding insurance companies by way of fake auto accidents. According to a statement that was filed along with his plea agreement, Williams has been working for over 20 years in the DC area as a “runner.” “Runner” is the street term that is used for a person who gets paid to solicit and recruit auto accident “victims” on behalf of law firms and medical care providers.

Williams obtained the names and phone numbers of accident victims both by collecting accident reports from various police stations in the area and through connections he had at local area hospitals. Often the accident victims whom Williams solicited had not been injured in the accidents.

Williams would also have to coach the individuals he found on how to fake or exaggerate injuries in order to gain more money from insurance claim payouts. Williams would then receive compensation from the attorneys and chiropractors to whom he referred the “victims.”

Williams also admitted to arranging staged automobile accidents, during which participants claimed they had been injured in fake accidents and submitted false insurance claims to recover for supposed injuries they sustained during those accidents.

As a result of Williams’ guidance, the insurance companies that were billed for these fake claims suffered losses somewhere between $400,000 and $1 million.

This case was investigated by the FBI Washington Field Office and is being prosecuted by Marla Tusk, the Assistant United States Attorney, and by Alexander Berlin, the Special Assistant United States Attorney.

Williams is set to be sentenced on July 15^th and could face the maximum penalty of 20 years in prison.