NEW ORLEANS – A sprawling federal investigation into staged vehicle collisions with tractor-trailers saw its first indictment Thursday against a personal injury attorney who was allegedly at the center of widespread insurance fraud.
U.S. Attorney Peter Strasser in New Orleans said Danny Patrick Keating Jr., a 51-year-old lawyer in New Orleans, was charged with conspiracy to commit mail fraud in violation of a federal statute. Keating now faces up to five years in prison as well as a possible $250,000 fine.
Keating is the 33rd person charged in the federal probe of an alleged conspiracy to defraud transportation companies and insurers by filing bogus injury claims to the tune of tens of thousands of dollars each. It comes in the wake of a guilty plea last week by Marvel Francois, 51, of Houma, who acknowledged being a participant in a May 17 staged accident.
Francois faces a similar sentence for mail fraud.
“This case brings to light allegations of a far-reaching illegal scheme to shake down tractor-trailer drivers, trucking companies and their insurance carriers,” Lana Venable, executive director of Louisiana Lawsuit Abuse Watch, told the Louisiana Record in an email. “As the costs to defend themselves against these unfounded claims typically must be passed down to the consumer, this is a prime example of an abuse of the civil justice system that costs all Louisianans.”
Venable’s organization sheds light on how lawsuit abuse hurts Louisiana businesses and families and works to end such abuse.
Keating’s indictment follows a Racketeer Influenced and Corrupt Organizations Act (RICO) lawsuit brought against Keating and others in September by Southeastern Motor Freight, a trucking company that alleges it was victimized by those involved in staged collisions in the New Orleans area.
The complaint filed Thursday in federal court in the Eastern District of Louisiana alleges that Keating intentionally financed 31 staged accidents and represented 77 plaintiffs in cases involving big-rigs and vehicles driven by conspirators. In turn, Keating and his clients netted $1.5 million in settlement funds, according to the indictment, with the attorney reaping $358,000 in attorney fees.
“This indictment is the culmination of an investigation conducted by special agents and intelligence analysts who worked tirelessly to bring Mr. Keating to justice and is one of many in this case that hopefully will deter others from fraudulently filing false auto and medical insurance claims,” FBI Special Agent in Charge Bryan Vorndran said in a prepared statement.