The American Trucking Associations threw its support behind federal legislation introduced Wednesday by Sen. Ashley Moody, R-Fla., aimed at cracking down on criminals who intentionally stage collisions with commercial trucks to secure massive legal payouts.
The Staged Accident Fraud Prevention Act (S. 5058) would make it a federal crime to engineer a crash with a commercial motor vehicle. The bill establishes strict criminal penalties targeting not only the drivers who orchestrate the collisions, but also the attorneys, physicians, and other co-conspirators who knowingly participate in the schemes.
The bill aims to close existing legal loopholes and provide federal law enforcement with stronger tools to dismantle similar operations. Companion legislation was introduced in the House of Representatives last year by Reps. Mike Collins, R-Ga., and Brandon Gill, R-Texas.
Henry Hanscom, chief advocacy and public affairs officer for the American Trucking Associations, noted these coordinated crashes put motorists at physical risk while driving up operating costs across the supply chain.
“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,” he said. “The frivolous lawsuits these rapacious individuals file against honest trucking companies contribute to soaring insurance premiums and raise costs for consumer goods.”
The problem extends beyond direct collision damages. It impacts risk management and insurance across the industry, too. The skyrocketing cost of liability insurance is driven in part by the increased cost of the average liability claim, and defense against false claims add additional cost layers.
“The potential for needing to fight fraudulent claims or minor claims that become very large has been an issue,” said Chad Krueger, vice president and managing director of Risk Intelligence at Central Analysis Bureau (CAB).
State trucking officials underscored that organized fraud creates a cascading economic burden. Scott Perry, president and CEO of the Florida Trucking Association, noted that Florida’s trucking industry bears a heavy cost from these organized operations, which ultimate inflates insurance costs for carriers, local businesses, and everyday consumers.
The legislation comes after a series of high-profile cases exposed ties between organized crash rings and broader criminal enterprises. In Louisiana, a federal investigation recently dismantled a widespread conspiracy involving dozens of “slammers,” “spotters,” and corrupt legal professionals targeting multiple carriers—a case that escalated to the murder of a federal witness in an attempted coverup.
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Original article published by Commercial Carrier Journal