Georgia slams the brakes on auto fraud ring costing insurers $95,000
AIG/21st Century Auto, Allstate and Travelers were among the victims of an auto insurance fraud ring recently broken up by Georgia regulators.
Georgia Insurance Commissioner John W. Oxendine said the ring, operating in Savannah, Ga., collected nearly $95,000 from six insurance companies by staging accidents and filing false claims. Other companies affected were GMAC, Mercury Insurance and Safeco.
Joseph T. Morris, 29, the alleged ringleader, was arrested and charged with three counts of insurance fraud and two counts of making false statements.
An investigation by the Georgia Office of Insurance found that 16 claims filed by Morris involved vehicles he owned or previously owned, and people he was associated with. Title histories on the vehicles indicate Morris sold the cars to other parties who were then involved in the staged accidents where claims were filed, officials said.
Morris, who is already on federal probation, faces two to 10 years in prison and a fine of up to $10,000 if convicted on the felony charge of insurance fraud.


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