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Tuesday, July 13, 2004

Auto Insurance Fraud Ring

NEW ORLEANS -- Thirteen people are accused of staging 70 crashes in Orleans and Jefferson parishes from 1997 to 2004, defrauding auto insurance companies of more than $193,000, according to State Police investigators.



Police said in 69 of the 70 crashes, no injuries were reported at the scene. Instead, the suspects reported injuries over the phone and requested quick bodily injury settlements, investigators said.



The fraud ring was uncovered when Direct General Insurance Co. contacted State Police in January. The company said a woman, Monica Edwards, told them she had been recruited to participate in a staged accident with promises of easy money. Through further investigation, police discovered that Edwards' alleged recruiters -- Yolanda Mitchell and Torres Ross, along with several others -- had filed claims in 70 accidents in two parishes in five years.



The companies allegedly defrauded include: State Farm, Allstate, Progressive, GEICO, Traveler's, Republic Western, U.S. Agencies, Republic Fire and Casualty, USAA, Direct General, Liberty Mutual, ACE Property, Naval Legal Services, and Gallagher Bassett.

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