U.S. Sen. Ashley Moody, R-Fla., launched laws Wednesday focusing on staged crashes involving business motor automobiles. The Staged Accident Fraud Prevention Act would make deliberately inflicting such a collision a federal crime. The proposal additionally covers individuals who manage or organize these schemes. Attorneys, physicians and different realizing co-conspirators might additionally face prosecution.
Invoice creates federal penalties
Beneath the proposal, a participant might obtain as much as 20 years in federal jail. Organizers would face the identical most punishment as drivers. Critical bodily damage or demise would set off a minimal 20-year sentence. Courts might additionally impose fines beneath Title 18.
“Anybody who phases or helps stage an accident with a business motorized vehicle endangers folks’s lives and livelihoods,” Moody mentioned. “On high of that, these stunts run up insurance coverage premiums for everybody,” she added. Moody additionally addressed the potential penalties for contributors. “This laws sends a transparent message: if you happen to do that, you’ll be prosecuted,” Moody mentioned.
Reps. Mike Collins, R-Ga., and Brandon Gill, R-Texas, launched companion laws in April 2025. Their proposal carries the quantity H.R. 2662. The Home referred that measure to its Judiciary Committee.
OOIDA helps the proposal
The Proprietor-Operator Unbiased Drivers Affiliation endorsed Moody’s laws. “Staged accidents are usually not victimless crimes,” mentioned Lewie Pugh, OOIDA’s government vp. “These are calculated, premeditated assaults that endanger lives, destroy livelihoods, and compromise freeway security.” Pugh mentioned criminals “abuse the authorized system for revenue by false accusations and lawsuits.”
Pugh mentioned these lawsuits “contribute to skyrocketing insurance coverage premiums for small trucking companies.” OOIDA represents almost 150,000 members, based on the group. Pugh mentioned these members “help Senator Moody and her commonsense laws.” He mentioned the measure would shield truckers from “refined felony fraud schemes.”
A number of transportation and enterprise organizations additionally help the proposal. They embrace the American Trucking Associations and Florida Trucking Affiliation. The Nationwide Motor Freight Visitors Affiliation and Transportation Intermediaries Affiliation additionally endorsed the measure. The U.S. Chamber of Commerce’s Institute for Authorized Reform backed the laws. Different supporters characterize insurance coverage, warehousing, meals distribution and motorcoach organizations.
Louisiana case concerned 31 staged crashes
Moody’s workplace cited a Louisiana fraud investigation in its announcement. Lawyer Danny Patrick Keating pleaded responsible to conspiracy to commit wire fraud in 2021. Keating admitted paying Damien Labeaud to stage 31 tractor-trailer crashes. He represented 77 plaintiffs related with these collisions.
Keating settled 17 of the 31 fraudulent instances, based on the Justice Division. Prosecutors linked these settlements to roughly $1.5 million in funds. Keating stored about $358,000 in authorized charges. Courtroom filings accused plaintiffs of offering false testimony and claiming fabricated accidents.
Why it issues
Staged crashes endanger truck drivers and expose carriers to fraudulent claims, authorized prices and better insurance coverage premiums. The laws would create a selected federal crime overlaying drivers, organizers and realizing co-conspirators.
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