Staged Crash Fraud Spreads in California, Targeting Rideshare Vehicles

Deliberate crash scams are spreading across California, with organized groups staging collisions to claim insurance payouts. State authorities are warning drivers to watch for suspicious incidents involving rideshare vehicles, a growing target for fraud rings.

The California Department of Insurance said on November 21st that five people — Ledonte Pope (30), Khalil Davis (27), Clydell Moses (24), John Murillo (37), and Feratte Nixon (26) — received county-jail sentences and probation after being arrested on auto-insurance fraud charges. The group is accused of staging a deliberate crash on November 23 last year on the I-215 Freeway in San Bernardino and then claiming injuries to obtain insurance benefits.

According to the department, Pope and Davis were riding in a rideshare vehicle when their accomplice Murillo struck it with another car. After the collision, the passengers claimed injuries and were taken to a hospital. The driver said the crash “seemed to be staged,” leading to further investigation.

The California Highway Patrol (CHP) reported the incident to the Inland Empire Auto Insurance Fraud Task Force (IEAIFTF). Investigators later found that one of the suspects riding in the rideshare vehicle was the registered owner of the vehicle used to cause the collision.

The five defendants were sentenced to 90 to 180 days in county jail and two years of probation, with charges including intentional collision, insurance-claim fraud, and assault with a deadly weapon.

Suspicious deliberate-crash cases continue to surface. The California Department of Insurance said there were 12,559 suspected insurance-fraud reports statewide last year. The department’s Insurance Fraud Investigation Division investigated 602 cases and referred 354 for prosecution. Potential losses were estimated at $207.62 million.

The division said, “Organized auto-insurance fraud accounts for a significant portion of these cases,” adding that such crimes “endanger public safety and lead to higher premiums for victims.”

Insurance professional Mark Jeong of MJ Insurance said, “Typical personal-injury coverage limits range from $100,000 to $500,000, but rideshare vehicles such as Uber or Lyft can carry up to $1 million, making them easier targets for fraud.” He added, “It is often difficult to prove whether a crash was intentional, so losses occur frequently.”

Jeong also noted, “Some people even jump in front of cars to claim injuries, or push shopping carts into reversing vehicles at markets.”

Experts advise drivers to prevent staged crashes by practicing defensive driving, maintaining safe following distances, and installing dashboard cameras.

Drivers are also being targeted in unexpected ways. Eunju Kim of Orange County said, “A man on a bicycle deliberately hit my parked car, and people with him said they saw me hit the bike. Without the dashcam, I would have fallen victim to an insurance scam.”

The California Department of Insurance urges drivers who suspect a staged or manipulated crash to contact police immediately and record the scene with photos and video whenever possible. Suspected fraud can be reported at insurance.ca.gov.

BY YOONSEO SONG [song.yoonseo@koreadaily.com]