LA-Based Fraudsters Sentenced To Prison For Staging Auto Collisions - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Regulation News
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Property and Casualty News
Regulation News RSS Get our newsletter
Order Prints
November 29, 2021 Regulation News
Share
Share
Post
Email

LA-Based Fraudsters Sentenced To Prison For Staging Auto Collisions

By Staff Reports

Los Angeles residents Victor Valle-Diaz, 55, Eduardo Retana, 25, and Ausencio Gomez, 46, were sentenced to serve in state prison after pleading no contest to charges of insurance fraud and assault for their involvement in the organized ring.

The three defendants were involved in 15 staged collisions involving 21 victims, some of who were severely injured, in a scheme to fraudulently collect nearly $330,000 from insurance companies.

Valle-Diaz was sentenced to seven years in state prison, Retana was sentenced to six years in state prison, and Gomez was sentenced to four years in state prison. All three admitted to an enhancement of more than $100,000 in losses and were ordered to pay $343,883 in restitution to the victims.

“These defendants staged collisions that put innocent motorists in harm’s way. This is not just a 'white collar' fraud scheme that only results in property damage, these types of schemes can result in serious injuries and cause financial loss to innocent victims and insurance companies," said Insurance Commissioner Ricardo Lara. “Thanks to the excellent work of department detectives and aggressive prosecution by the Los Angeles County District Attorney’s office, we were able to take down these fraudsters and bring them to justice."

The Los Angeles Auto Insurance Fraud Task Force, comprising of Department of Insurance detectives and California Highway Patrol investigators, began an investigation after a CHP officer responded to what they suspected was a staged collision.

The investigation revealed Retana and Gomez intentionally staged a collision on a Los Angeles freeway for the purpose of insurance fraud. Both admitted to participating in the scheme in exchange for money and stated a third party orchestrated it, providing them with a vehicle and a fraudulent identification card. The third party was later determined to be Valle-Diaz.

The staged collision was completed by performing a “Sudden Stop” on the freeway while traffic was flowing, forcing the victim who was driving a Mercedes SUV, to rear-end the vehicle driven by Retana and Gomez.

A driver of a Toyota Tacoma became an unintended victim when it collided with the rear-end of the Mercedes. Both the driver and passenger of the Toyota were transported by ambulance from the scene of the collision. The driver of the Toyota suffered the loss of a tooth and a broken foot, which required surgery.

The “Sudden Stop” scheme of staged collisions is orchestrated in a manner in which an innocent victim is intentionally targeted and forced to be the “at fault” driver in a rear-end collision, so that the suspects can profit from a fraudulent insurance claim against the victim driver’s insurance company.

Further investigation found Retana and Gomez colluded with Valle-Diaz to coordinate 14 additional staged collisions involving over 20 victims between January 2020 and September 2020. Valle-Diaz acted as the “capper” for the staged collisions, meaning he ensured policies were obtained, often using false identities, developed “scripts” for claimants, coordinated staged collisions and followed through with filing the insurance claim.

No image

This report compiled by InsuranceNewsNet staff.

Older

The Black Friday Prospecting Message To Fill Your December Calendar

Newer

PCF Insurance Services Gifts $8.2 Million To Employees

Advisor News

  • What’s behind private equity investment in insurance brokerages
  • Advisors get a win as NJ Senate passes independent contractor bill
  • Why federal retirement benefits are more complex than advisors realize
  • Why timing the market is still a retirement mistake and what to do instead
  • Business owners may be overlooking a key part of their financial picture
More Advisor News

Annuity News

  • Best’s Special Report: U.S. Life/Annuity Industry Sees Bottom-Line Growth Despite 18% Decline in Total Income in First-Quarter 2026
  • Globe Life Inc. (NYSE: GL) Records 52-Week High Thursday Morning
  • Fortitude Re Completes $500 Million FABN Issuance
  • Reframing retirement income for greater certainty
  • Jackson Introduces Dow Jones Industrial Average Index Option, Flexible Premiums, Six-Year Rate Guarantee in Latest Registered Index-Linked Annuity Launch
More Annuity News

Health/Employee Benefits News

  • Getting disability benefits got harder after the Social Security Administration changes
  • Capitol Beat: Scott's veto signatures piling up
  • Rising ACA premiums spur pivot to cheaper plans
  • California is getting ready to increase a health insurance tax. Will it affect your premium?
  • New Insurance Findings from University of California Described (The impact of Medicaid expansion on coverage among those lacking housing basics, 2010-2019): Insurance
More Health/Employee Benefits News

Life Insurance News

  • OVER $107 MILLION IN LIFE INSURANCE BENEFITS LOCATED FOR TENNESSEANS IN 2025 THROUGH NAIC'S LIFE INSURANCE POLICY LOCATOR SERVICE
  • Maryland Heights man pleads guilty in murder-for-hire death of his mom
  • AM Best Affirms Credit Ratings of Everlake Life Group Members
  • Industry experts warn NAIC: Fix flawed IUL illustrations now
  • InsuranceAUM.com Celebrates a Historic 5th Annual Insurance Investment Executives’ Meeting in Chicago, Honoring Outstanding Industry Leaders and Spotlighting Next Event in Austin
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Maximize Your FIA Case Results
Learn a repeatable process to review, reposition, and present FIA opportunities with confidence.

Aim higher during Annuity Awareness Month
Raise the bar with our diverse portfolio of Ascend annuities, backed by superior financial strength

You Could Be Losing Up to 20% of Your Commissions
GreenWave helps you find, fix, and prevent commission errors.

True Independence Means Having Choices
Cambridge offers flexibility, stability, proven tools—no private equity strings attached.

Life moves fast. Your BGA should, too.
Stay ahead with Modern Life's AI-powered tech and expert support.

Looking for stronger rates, amplified growth & real results?
Sentinel's Accumulation Protector Plus℠ Annuity is for clients wanting more from retirement planning

Press Releases

  • Prosperity Life GroupSM Launches Prosperity PathWaySM Series, Bringing Greater Choice and Flexibility to Retirement Income Planning
  • Senior Market Sales® Fortifies Annuity Reach With Acquisition of Retirement Planning Firm Stratton & Company
  • RFP #T01625
  • Rockwood Programs Appoints Kerry Ladouceur as Vice President, Financial Lines
  • JP Insurance Group Launches Commercial Property & Casualty Division; Appoints Joe Webster as Managing Director
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet