New Jersey Insurance Fraud Ring Busted

New Jersey police have put the stop to an insurance fraud ring which allegedly set up accidents to cheat insurance companies out of more than $5 million.

According to an AP report, the ring was one of the largest ever busted in the Garden State, which currently produces the highest auto insurance rates and auto density in the country.

The year-and-a-half investigation worked with electronic monitoring devices and used undercover detectives posing as accident victims to break up the ring. Charged under New Jersey’s year-old “runner statue,” which prohibits the practice of offering money to people to find patients and clients with the intent of collecting benefits, were 13 of the 172 individuals indicted. Also charged were 15 juveniles who allegedly participated in the staging of the crashes.

Taking place from 1997 to 1999, the accidents were mainly low-speed rear-enders. In the worst case, the occupants were extracted from the wreckage, but none were hospitalized.