Typically, investigations into potential fraud of some sort involve white collar investigations. Financial professionals in many fields conduct transactions on a frequent basis; some conduct numerous transactions every day.
Allegations of fraud may arise over a simple mistake–some may arise from a misunderstanding. In general, white collar investigations are considered to involve nonviolent financial offenses, including potential fraud charges. But, from time-to-time, authorities may announce allegations of insurance fraud that involve dangerous alleged acts.
The Louisiana Department of Insurance grew suspicious of some insurance claims and in February, agency officials got in contact with detectives in Lafayette, Louisiana concerning those suspicions. Tuesday, the insurance fraud investigation led to the arrest of eight people. One man was arrested Friday, and is accused of being the ringleader. Warrants have been issued for three others.
State Police believe that the group staged automobile accidents with the intent to defraud insurance companies. Three other people who are allegedly implicated in the insurance fraud scheme have not been arrested.
Law enforcement says that the group conspired to stage car accidents and included children in the allegedly staged events. Children ranging in age from 1 to age 13 were reportedly used in the allegedly staged accidents.
Police claim that adults involved would then submit claims to insurance companies for themselves and the children that each adult was responsible for, according to The Advocate in Baton Rouge.
The eight people arrested Tuesday were booked into jail on several charges each. Among the allegations are charges of insurance fraud, child endangerment, theft and conspiracy. The charges filed against each individual vary from person to person.
Source: The Advocate, “3 more sought in staged accidents,” Billy Gunn, July 1, 2013