A 16-member auto insurance fraud ring operating in the Detroit metro area has been busted, according to Michigan’s attorney general, Michael Cox.
An investigation conducted by the National Insurance Crime Bureau uncovered the scheme in which individuals allegedly would buy vehicles at auto auctions for a few hundred dollars, resell the car to another member of the ring for a few thousand dollars, and then file multiple claims for damages suffered when the vehicles were allegedly involved in accidents — allowing the ring members to allegedly collect thousands of dollars on a car purchased for a few hundred dollars, according to authorities.
The total amount of fraud perpetrated by the group is approximately $1.47 million, authorities said in a statement. A sweep by the Michigan State Police this week has led to the arrest of ten of the suspects. MSP continues to search for the remaining six suspects.
All but one of the ring members face one count of racketeering, and each face at least one and up to five counts of insurance fraud. If convicted, maximum penalties range from four years and/or $50,000 up to 20 years and/or $350,000.
Ten members of the ring have been arrested.
Was this article valuable?
Here are more articles you may enjoy.
Mamdani Delivers Rent Freeze in Milestone for New York City Tenants 
PE-Backed Insurance Broker Hub International Files Confidentially for US IPO 
US Cyber Insurance Market Sees Flat Premium, More Third-Party Claims Hit Loss Ratio 
Viewpoint: Boom in Hyperscale Data Centers Puts Re/Insurers to the Test 
