A Baton Rouge congressman has introduced legislation that would make staging vehicle collisions a federal crime in the wake of investigators uncovering an extensive accident-staging ring in New Orleans.
Louisiana Rep. Garret Graves introduced the Highway Accident Fairness Act of 2021 on Dec. 7 in an effort to protect drivers on public roads, prevent dishonest insurance claims from being filed and help to protect supply chains and the movement of freight. The bill, which was co-sponsored by Texas Rep. Henry Cuellar (R-Laredo), was referred to the House Judiciary Committee.
The lawmakers filed the bill as a result of investigation of the New Orleans-based staging ring whose activities have so far led to 40 people being charged with crimes and 29 convictions, according to a news release from Graves’ office. The ring’s actions resulted in more than 100 accidents, with a single staged accident generating a $4.7 million civil settlement, the release states.
Groups such as the American Trucking Association and the Louisiana Motor Transport Association (LMTA) encouraged Graves to move forward on the bill to better protect truckers and their insurers.
“This ongoing fraud hurts drivers and specifically hurts truck drivers and trucking companies through higher insurance rates,” Renee Amar, LMTA’s executive director, told the Louisiana Record in an email. “This fraud has got to be stopped, and increasing penalties and prosecuting all of the criminals, from the slammers to the doctors to the law firms, is needed to stop this criminal behavior once and for all.”
The bill, HR 6151, would help to decrease insurance rates for drivers by cracking down on false insurance claims produced by attorneys or other individuals involved in accident-staging rings, Graves said.
“Louisiana drivers pay some of the highest insurance rates in America,” the congressman said in a prepared statement. “This is unacceptable and the solutions don’t require rocket science. Our bill will prevent criminal rings from further increasing the cost to drive and do business in Louisiana.”
Under the terms of the bill, a person convicted of staging collisions with motor vehicles would face fines, jail time not exceeding 20 years or both. When such collisions cause serious bodily injury, imprisonment for at least 20 years would be required, along with appropriate fines, the bill states..
HR 6151 would also force disclosure of third-party litigation funding in highway accident claims. The bill would require disclosure of the names of any commercial enterprises that stand to receive a portion of any monetary relief issued during a legal settlement or court judgment.