Suffolk County Supreme Court Justice Maureen T. Liccione dismissed eight staged auto accident claims in February, exposing an organized fraud ring that targeted New York’s no-fault insurance system. In the civil case, Integon v. Salazar-Ochoa, Judge Liccione ruled that Integon Insurance was not responsible for claims tied to “a coordinated scheme involving ‘junker’ cars, commercial box trucks, and a network of over 100 medical providers.” The decision offered a detailed look at how organized auto insurance fraud directly contributes to the state’s skyrocketing insurance premiums, even for law-abiding drivers.
The ruling comes at a time when Gov. Kathy Hochul is proposing a reform plan to directly target staged accidents, insurance fraud and litigation abuse. Recent reports from the Insurance Information Institute (Triple-I), the Chamber of Progress, and the Partnership for New York City identify them as key contributors to New York’s current auto insurance affordability crisis.
“This case shows exactly how fraud rings exploit New York’s no-fault insurance system and stick law-abiding drivers with the bill,” said former NYC Taxi & Limousine Commissioner Matthew W. Daus, Esq. “Staged crashes, fake medical claims, and legal manipulation don’t just hurt insurers – they raise costs for every New Yorker. When a single fraud ring can coordinate eight crashes and involve over 100 providers, it’s clear the system is broken.”
The court’s filings showed that all eight dismissed claims shared strikingly similar “red flags,” consistent with an organized fraud operation: All eight accidents involved three occupants per vehicle, occurred in the same area of Queens, and took place immediately after a policy was issued – but before any premiums were paid.
The alleged ringleaders included Ruth Rodriguez Moran and Carolina Moran, both accused of selling high-mileage “junker” vehicles meant specifically for staged crashes. According to the ruling, the vehicles were intentionally rear-ended by box trucks or commercial vehicles to maximize potential payouts.
Over 100 healthcare providers were also named in the lawsuit. The court noted that treatment was routed through just two medical offices and nearly all claimants used the same attorney to generate thousands of dollars in bogus billing. The policies were issued via Mansi International LLC and canceled for nonpayment immediately after the accidents.
Source: Empire Report New York
