
A Louisiana House Bill up for debate, would make schemes to stage vehicle crashes its own felony.
The legislation introduced by Representative Sherman Mack is backed by state Insurance Commissioner Jim Donelon.
The bill would make any scheme to cause a collision in exchange for anything of value; to scheme to document phantom wrecks; or to help in filing fraudulent insurance claims after staged crashes; a felony punishable by up to five years in prison if convicted.
The sentence would increase up to 30 years if the staged accident caused death or serious injury.
House Bill 15 comes as at least 15 people pleaded guilty in New Orleans on charges related to a scheme to defraud the insurance companies of 18-wheelers.