Law enforcement recently arrested six New Jersey residents who allegedly took part in an insurance fraud scheme.
The suspects allegedly concocted a “crash-and-buy scheme” in which they bought auto insurance and then filed fake claims stemming from a car crash.
According to authorities, the suspects filed fraudulent auto insurance claims shortly after a motor vehicle accident.
All but one of the insurance claims was filed with Progressive Garden State Insurance Company; the other claim was filed with GEICO.
The suspicious claims prompted the insurance company to notify police, which then conducted an investigation. The investigation involved the NJ Attorney General’s Office and the New Jersey Office of Insurance Fraud.
The suspects were eventually arrested and charged with third degree insurance fraud.
The six suspects include a 31-year-old man from Belleville NJ, a 26-year-old woman from East Orange NJ, a 52-year-old woman from Newark NJ, her daughter, a 29-year-old man from Egg Harbor Township, and a 35-year-old man from Jersey City.
If the suspects are ultimately convicted on the insurance fraud charges, they could be sentenced to 3-5 years in NJ State Prison. That’s because this kind of insurance fraud is considered a third degree felony.
For additional information about this case, check out the NJ.com article entitled “6 N.J. Residents Charged with Insurance Fraud, Authorities Say.”