Five New Orleans area individuals were recently arrested for their role in an insurance fraud scheme centered on staged accidents between private passenger automobiles and large trucks.

The indictment, announced by the U.S. Attorney for the Eastern District of Louisiana, Peter Strasser, on Oct. 24 indicates that this investigation is ongoing and could result in further charges.

“I am proud of the LDI’s continuing work to identify and prosecute insurance fraud with our state and federal partners,” said state Insurance Commission Jim Donelon. “This enforcement action reminds the public of the everyday challenges for commercial trucking companies, school bus operators and non-emergency transportation providers, among others, operating in Louisiana as well as the role our investigative teams play in circumventing fraudulent claims against insurers, who pass those losses on to their policyholders.”

The FBI estimates that the annual cost of insurance fraud impacts U.S. consumers at an average of $700.00 per household in increased premiums, making coverage unaffordable for many.

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