TX Accident Ring Defendants Arrested

Another staged accident ring has been disbanded.

U.S. Attorney James T. Jacks of the Northern District of Texas announced the arrest of four Dallas/Fort Worth area residents, who were all charged in a six-count indictment with various offenses.

According to the press release, the indictment charges Kara Lashon Collins, along with her husband, Frenchitt Su-Dell Collins, Allen Murray Robison, and Stephanie Denise Moses with one count each of conspiracy to commit mail fraud and health care fraud. In addition, the indictment charged Kara and Frenchitt Collins’ with three counts each of mail fraud and two counts of aggravated identity theft. Stephanie Moses is also charged with one count of mail fraud. Mrs. Collins, Alan Robison, and Stephanie Moses have since been released on bond, while Mr. Collins is still in custody.

According to the indictment, since 2006 the defendants have been running a scam to defraud various insurance companies, which include Hartford Lloyds Insurance Company, Travelers Insurance, GEICO Insurance Company, Nationwide Insurance Company, 21st Century Insurance Company, and Farmers Insurance Group of Companies. The fraudulent claims have totaled payouts of hundreds of thousands of dollars.

As part of their scheme, according to the indictment, the defendants recruited individuals to claim they had been involved and injured in staged automobile accidents. They obtained insurance both on vehicles used in the accidents – sometimes using salvaged vehicles – and on the individuals allegedly driving the vehicles.

We’ve heard of phantom vehicle claims. Apparently we have phantom chiro clinics in this case. It is stated that the defendants also allegedly created several fake chiropractic clinics so they could have the fraudulent medical records and bills to back up their false insurance claims. They would then submit the claims to numerous private-pay property and casualty insurance carriers and cause them to settle the claims based on the false and fraudulent property damage and personal injury medical records and bills. The defendants would then take the settlement checks and distribute the funds amongst themselves.

Assistant U.S. Attorney Stephen P. Fahey is in charge of the prosecution, while the case is being investigated by the U.S. Postal Inspection Service and the FBI.

An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, the conspiracy count and each of the mail fraud counts carry a maximum statutory sentence of 20 years in prison and a $250,000 fine. Each of the aggravated identity theft counts carries a mandatory two-year prison sentence and a $250,000 fine. Restitution could also be ordered. The indictment also includes a forfeiture allegation which would require the defendants, upon conviction, to forfeit to the U.S. all property derived from proceeds traceable to their offenses.