GOVERNOR HOCHUL ANNOUNCES 16 ARRESTS IN STATE CRACKDOWN ON AUTO INSURANCE FRAUD

The following information was released by the office of the Governor of New York:

New York State Police and Department of Financial Services Uncover Staged Crashes and Fraudulent Insurance Claims Throughout New York State

Builds on Governor Hochul's Efforts to Lower Auto Insurance Costs by Tackling Fraud, Waste and Abuse That Drive Up Costs for New York Drivers

Governor Kathy Hochul today announced that a joint investigative partnership by members of the New York State Police (NYSP) and the New York State Department of Financial Services (DFS) resulted in the arrests of 16 individuals as part of ongoing and joint auto insurance fraud investigations. The joint investigation uncovered nearly $500,000 in attempted fraudulent claims across more than a dozen cases in New York City and Suffolk, Onondaga, Monroe, and Erie counties. The arrests follow major reforms enacted earlier this year by Governor Hochul as part of her statewide effort to combat staged crashes, fraudulent insurance claims and other schemes that drive up auto insurance costs for New Yorkers.

"Auto insurance fraud is not a victimless crime every staged crash, fraudulent claim and criminal scheme ultimately drives up costs for New Yorkers who play by the rules," Governor Hochul said. "We're cracking down on fraudsters and making it clear that New York will not tolerate criminals gaming the system at the expense of hardworking families."

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New York State Police Superintendent Steven G. James said, "Insurance fraud is a crime that affects every New Yorker who pays an auto insurance premium. These investigations can be complex and often involve individuals who deliberately attempt to conceal their activity through false claims, staged incidents and other fraudulent conduct. By combining the investigative capabilities of the State Police with the specialized expertise of DFS, we are identifying these schemes, building stronger cases and holding those responsible accountable. I thank Governor Hochul for providing the resources and support necessary to make combating auto insurance fraud a priority."

New York State Department of Financial Services Acting Superintendent Kaitlin Asrow said, "Insurance fraud drives up costs for drivers and staged crashes are dangerous for all New Yorkers. DFS is proud to partner with the New York State Police to enhance our shared ability to combat insurance fraud, and we appreciate Governor Hochul's leadership in working to make insurance more affordable for New Yorkers."

The 16 arrests announced today include 31 total charges 29 felonies and 2 misdemeanors across the following counties:

County Total Arrests

Bronx 7

Erie 1

Kings 2

Monroe 1

Queens 1

Onondaga 1

Richmond 1

Suffolk 2

Auto insurance fraud is not a victimless crime every staged crash, fraudulent claim and criminal scheme ultimately drives up costs for New Yorkers who play by the rules."

Governor Hochul

Governor Hochul has made lowering the cost of auto insurance a key part of her affordability agenda by advancing strategies to combat fraud, closing loopholes and strengthening enforcement against individuals and organized groups that exploit the insurance system. In 2025 alone, insurance carriers reported 43,811 incidents of suspected motor vehicle insurance fraud to DFS, an increase of 80% in five years. A majority of those referrals related to suspected no fault fraud.

Earlier this year, Governor Hochul directed DFS, NYSP, the Department of Motor Vehicles and the Division of Criminal Justice Services to take a more proactive and coordinated approach to auto insurance fraud, including dedicating NYSP and DFS resources specifically to insurance fraud investigations and strengthening coordination with prosecutors and law enforcement agencies across the state. The task force combines NYSP investigators with specialists from DFS's Insurance Frauds Bureau to identify suspected fraud, investigate criminal activity and build cases for prosecution.

The Governor also secured major auto insurance reforms in the FY27 Enacted Budget to combat fraud and reduce costs for consumers. Those reforms include provisions allowing prosecutors to seek criminal penalties against individuals who organize staged accidents not only the individuals behind the wheel providing law enforcement with another tool to target the organizers of sophisticated fraud schemes.

The reforms also address other factors driving auto insurance costs by limiting certain damages available to individuals engaged in unlawful behavior at the time of an accident, tightening standards governing serious injury claims, limiting recoveries when individuals are primarily responsible for causing an accident and strengthening State oversight of insurance rates and excess insurer profits.

Two cases highlight the ongoing work of the task force:

In Brooklyn, investigators examined a December 2, 2025 crash in which a driver allegedly caused a collision by deliberately cutting in front of another vehicle at an intersection. Investigators say the suspect falsely accused the other driver of running a stop sign and collected more than $16,000 in medical insurance claims.

Video evidence shows the suspect's vehicle turning into the other car, according to investigators. Police arrested the suspect on charges of third-degree insurance fraud, a class D felony, as well as first-degree falsifying business records, second-degree staging a motor vehicle accident and third-degree criminal mischief, all class E felonies. The investigation remains ongoing.

On March 18, 2026, multiple actors staged an accident in the Bronx, NY. Following the accident, the suspects involved received medical treatment from injuries they alleged from the staged accident, which resulted in more than $70,000 worth of fraudulent medical expenses. Both suspects were arrested and charged with Insurance Fraud 2nd degreeC Felony, Attempted Grand Larceny 2nd degree-D Felony and Falsifying Business Records 1st-E Felony.

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State Senator Jamaal T. Bailey said, "New Yorkers deserve an insurance system built on fairness and accountability, but for far too long bad actors have exploited the system seeking to profit at the expense of everyday drivers. This crackdown on fraudulent claims and staged collisions progresses our ongoing effort to lower auto insurance costs and close predatory loopholes. I extend my thanks to Governor Hochul, Majority Leader Andrea Stewart-Cousins, Speaker Carl E. Heastie, NYS Police, NYS Department of Financial Services, and my colleagues in government for taking action on high insurance rates and delivering relief to policyholders statewide."

Assemblymember David I. Weprin said, "I applaud this coordinated effort by the New York State Police and the New York State Department of Financial Services working in tandem to identify and fight auto insurance fraud throughout New York. As Chair of the New York State Assembly Committee on Insurance, I am deeply committed to ensuring fair, affordable rates for all insurance policyholders. Bringing auto insurance fraudsters to justice is a critical step to boost safety on our streets and improve affordability for honest New Yorkers. I look forward to continued partnership with my fellow leaders in government to protect New Yorkers from dangerous and dishonest fraudsters statewide."

Brooklyn District Attorney Eric Gonzalez said, "Staged crashes endanger motorists and drive up costs for anyone who pays auto insurance, so I commend Governor Hochul for leading a multi-agency action to address this crime statewide. My office will continue to work together with all law enforcement partners to root out fraud in all of its forms and to keep our roads safe for everyone."

Bronx District Attorney Darcel D. Clark said, "Insurance fraud puts the public at risk and honest drivers pay the price. This crackdown sends a strong message that we will hold accountable those who seek to profit through illegal schemes. My office will work diligently to prosecute these cases and keep our communities safe. I thank Governor Hochul, the New York State Police and the New York State Department of Financial Services for their attention to this issue and investigative efforts."

Queens District Attorney Melinda Katz said, "There is nothing accidental about insurance fraud. Governor Hochul recognizes the seriousness of these incidents and the price that all New Yorkers pay in increased insurance premiums. The Governor has made extremely helpful changes to state law to help prosecutors investigate and arrest those who organize and arrange these dangerous and fraudulent acts."

Investigations remain ongoing, with additional enforcement actions expected. Anyone who thinks they may have been a victim of insurance fraud is urged to call the Insurance Fraud Hotline at 888-372-8369 or visit dfs.ny.gov/consumers to file an online report.