New York Car Scam Driving Your Insurance Rates Up
Governor Kathy Hochul is highlighting reform measures that crack down on a huge rise in staged auto crashes, which has led to a spike in auto insurance rates in New York State.
Hochul stood with prosecutors to announce that two New Yorkers are going to prison for staging three crashes on local highways in 2024 and collecting fraudulent insurance payouts for damage and injuries.
Two Brooklyn Men Sentenced For Staging Car Crashes On New York City Highways To Collect Fraudulent Insurance Payouts
Two Brooklyn men are heading to prison for orchestrating a scheme where they deliberately caused car crashes on busy New York City highways, then collected fraudulent insurance payouts from the innocent drivers they targeted.
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Jaime Huiracocha, 53, and Victor Murillo, 34, were sentenced this week after pleading guilty to charges related to three staged crashes between August and October 2024.
Why This Impacts All New Yorkers
Governor Hochul used the announcement to highlight sweeping insurance fraud reforms secured in this year's state budget, including new criminal penalties targeting anyone who organizes a staged accident, tighter definitions of what constitutes a serious injury for damage claims, and a ban on insurance companies setting rates based on factors like zip code or education level.
"If you stage crashes, try to defraud or endanger New Yorkers, you will be held accountable," Hochul said.
Hochul's new measures make it easier to investigate and prosecute doctors, lawyers, drivers, and passengers all taking part in staged crashes, officials say.
She thinks this will lower the number of stagged crashes, resulting in insurance premiums dropping.
How The Scheme Worked
Murillo was the designated crash driver. He would cut in front of unsuspecting motorists on highways and slam on his brakes, forcing a rear-end collision. In one instance, when a driver managed to brake in time, Murillo reversed and backed into the victim's car instead.
Huiracocha followed in a separate vehicle, directing Murillo on exactly when and how to cause each crash. After each collision, Murillo would quietly climb to the passenger seat and slip out into a waiting getaway car, leaving behind passengers who pretended to be injured.
Those passengers were then directed to visit specific medical clinics to file fraudulent injury claims.
Dashcam footage from at least two victims captured the scheme in action and proved critical to the investigation.
The Sentences
Huiracocha was sentenced to one to three years in prison. Murillo received two years. Two additional defendants are expected to be sentenced next month.
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