WASHINGTON — The trucking industry is reacting to proposed legislation aimed at cracking down on staged accidents.
On Wednesday, Senator Ashley Moody (R-FL) introduced the Staged Accident Fraud Prevention Act. The bill would make it a federal crime to engineer a crash with a commercial motor vehicle.
“With over 450,000 trucking jobs in Florida, it is safe to say that truck drivers keep the economy moving,” Moody said. “Unfortunately, there are crazed and dangerous fraudsters out there who would rather put people’s lives in danger for a quick payday instead of making an honest living putting in a hard day’s work. Anyone who stages or helps stage an accident with a commercial motor vehicle endangers people’s lives and livelihoods. On top of that, these stunts run up insurance premiums for everyone. Unacceptable. This legislation sends a clear message: if you do this, you will be prosecuted.”
The Staged Accident Fraud Prevention Act
According to the American Trucking Associations (ATA), the Staged Accident Fraud Prevention Act would provide a strong, necessary deterrent to prevent these dangerous and costly schemes from taking root, while offering critical protections to the motor carriers and drivers who tirelessly power our nation’s economy and supply chain. Specifically, the bill establishes straightforward criminal penalties not just for the drivers who stage these collisions—but also for the attorneys, physicians and other co-conspirators who knowingly participate in the fraud to extort victimized motor carriers.
Florida Trucking Association (FTA)
“Florida’s trucking industry doesn’t just move freight—it also bears the cost of organized fraud,” said Scott Perry, FTA, president and CEO. “Staged crashes put innocent motorists and professional truck drivers at risk, while driving up insurance costs for carriers, businesses and consumers alike. We appreciate Senator Moody’s leadership in giving law enforcement additional tools to combat these dangerous criminal enterprises.”
American Trucking Associations
According to ATA, this dangerous and increasingly pervasive criminal scheme deliberately puts innocent motorists at risk, all to manipulate the legal system and extract fraudulent seven-figure settlements from reputable trucking companies.
“When con artists seeking a big payday intentionally collide with commercial motor vehicles, their reckless disregard for safety puts innocent truck drivers and the motoring public at risk,” said Henry Hanscom, ATA chief advocacy and public affairs officer. “The frivolous lawsuits these rapacious individuals file against honest trucking companies contribute to soaring insurance premiums and raise costs for consumer goods. ATA commends Senator Moody for introducing this legislation to close legal loopholes that criminals are exploiting to target America’s hardworking truckers. By establishing clear, enforceable criminal penalties, we can finally put an end to this dangerous and costly practice.”
Numerous schemes in recent years have targeted trucking companies, and these sophisticated fraudsters often have ties to organized crime. One such criminal ring exposed in Louisiana was the subject of a recent documentary. The saga began when a con artist deliberately crashed into a truck belonging to a third-generation, family-owned trucking business. Eventually, federal investigators unraveled a vast conspiracy involving dozens of “slammers,” “spotters,” and corrupt lawyers who orchestrated numerous operations that targeted multiple companies. In an attempted coverup, a federal witness was killed.
Companion legislation was introduced in the House of Representatives last year by Congressmen Mike Collins (R-GA) and Brandon Gill (R-TX).
Owner-Operator Independent Drivers Association (OOIDA)
“Staged accidents are not victimless crimes,” said Lewie Pugh, executive vice president, OOIDA. “These are calculated, premeditated assaults that endanger lives, destroy livelihoods and compromise highway safety. To add insult to injury, criminals abuse the legal system for profit through false accusations and lawsuits, which contribute to skyrocketing insurance premiums for small trucking businesses. OOIDA and our nearly 150,000 members support Senator Moody and her commonsense legislation to protect law-abiding truckers from sophisticated criminal fraud schemes that exploit the hardworking [people] behind the wheel.”
U.S. Chamber of Commerce
“Staged accidents are a dangerous and costly crisis that is threatening public safety and household budgets across America,” said Stephen Waguespack, president of the U.S. Chamber of Commerce’s Institute for Legal Reform. “Senator Moody’s leadership on the Staged Accident Fraud Prevention Act builds on the momentum to put a stop to these organized crime rings that specifically target trucking businesses.”
Independent Insurance Agents & Brokers of America
“The Independent Insurance Agents & Brokers of America applauds Senator Moody for introducing legislation to crack down on staged accidents that endanger motorists, disrupt supply chains and fuel lawsuit abuse,” said Nathan Riedel, IIABA senior vice president of federal government affairs. “This commonsense measure will help deter insurance fraud, reduce unnecessary litigation costs and ease the pressure of rising insurance premiums on responsible commercial operators and consumers nationwide.”
National Tank Truck Carriers
“Staged accidents are deliberate criminal acts that put professional drivers, the motoring public and our nation’s supply chain at risk,” said Ryan Streblow, National Tank Truck Carriers president & CEO. “Tank truck carriers operate the safest and most highly regulated vehicles on the road, yet they remain attractive targets for fraud schemes that exploit the legal system while driving up insurance costs for carriers, shippers and ultimately consumers. The National Tank Truck Carriers strongly supports the Staged Accident Fraud Prevention Act because it establishes meaningful federal penalties to deter these dangerous crimes and hold everyone involved in these fraudulent schemes accountable. We commend Senator Ashley Moody for introducing this important legislation in the Senate, as well as Representatives Mike Collins and Brandon Gill for leading its introduction in the House. Their leadership will help protect hardworking truck drivers, strengthen highway safety and combat the costly fraud schemes that threaten our industry.”
Truck Renting and Leasing Association
“The Truck Renting and Leasing Association (TRALA) supports and endorses the Staged Accident Fraud Prevention Act,” said Jake Jacoby, TRALA president & CEO. “The ever-increasing use of these staged accidents not only cause disruptions, endanger lives and harm highway safety, but they are also a contributing factor to the out-of-control lawsuit abuse that occurs due to these bad actors, leading to increased insurance costs and a disruption in the supply chain for all Americans. We applaud Congressman Mike Collins and Senator Ashley Moody for their leadership in tackling this critical commonsense issue and our members – who represent approximately 30% of all newly purchased commercial over-the-road trucks and tractors – stand ready to support this legislation and have it enacted into law.”
National Motor Freight Traffic Association (NMFTA)
“The trucking industry cannot afford to let staged accident schemes continue putting professional truck drivers, motor carriers and the motoring public at risk,” said Joe Ohr, chief operations and technical officer, NMFTA. “NMFTA strongly supports the Staged Accident Fraud Prevention Act and commends Senator Ashley Moody as well as Representatives Collins and Gill for leading this effort to hold those responsible criminally accountable. By targeting organized fraud at its source, this legislation represents a critical step toward safeguarding our nation’s freight network and the millions of Americans who depend on it every day.”
International Warehouse Logistics Association (IWLA)
“Staged accidents are not simply fraudulent insurance claims — they are deliberate criminal acts that put drivers, passengers and the public at risk,” said Jay Strother, IWLA president & CEO. “The Staged Accident Fraud Prevention Act would provide a strong federal deterrent against these dangerous schemes and help protect the hardworking [people] who keep our nation’s supply chain moving. IWLA thanks Senator Moody for bringing this important legislation to the Senate and urges Congress to advance this commonsense measure.”
National Association of Mutual Insurance Companies (NAMIC)
“Every day, staged accidents and fraudulent schemes put innocent lives at risk and raise costs for every American,” said Jimi Grande, NAMIC senior vice president of federal & political affairs. “The Staged Accident Fraud Prevention Act will help coordinate law enforcement in combatting these sophisticated crime rings and bring the weight of federal law to stopping them. NAMIC commends Senator Moody for her leadership on this issue and for working to lower costs and make Americans safer on our roads and highways.
International Foodservice Distributors Association (IFDA)
“Staged accidents are a growing threat to the drivers who move our nation’s food supply and to the businesses that depend on them,” said Mala Parker, senior vice president of government & public affairs, IFDA. “IFDA is proud to support the Staged Accident Fraud Prevention Act. Thanks to Senator Moody for championing this commonsense measure to hold bad actors accountable. These staged collisions have resulted in escalating insurance premiums and fueled the rise of so-called nuclear verdicts, both of which lead to higher costs for consumers. The nation’s foodservice distributors, and the customers who count on them, deserve nothing less than the passage of this legislation.”
Transportation Intermediaries Association (TIA)
“Staged accidents are fraudulent schemes that hit brokers and carriers alike, and the criminals responsible drive up costs for everyone in the supply chain, which represents the $343 billion third-party logistics industry,” said Chris Burroughs, president, CEO, TIA. “TIA fully supports the Staged Accident Fraud Prevention Act, which takes concrete steps to crack down on fraud and hold these bad actors and their co-conspirators accountable – and in doing so, will keep the traveling public safe and bolster supply chain resilience.
The Staged Accident Fraud Prevention Act is also supported by:
- Associated Industries of Florida.
- Truckload Carriers Association.
- Georgia Motor Trucking Association.
- Texas Trucking Association.
- American Property Casualty Insurance Association.
- American Tort Reform Association.
Dana Guthrie is an award-winning journalist who has been featured in multiple newspapers, books and magazines across the globe. She is currently based in the Atlanta, Georgia, area.
