Dozens Of Family Members Suspected To Be Part Of Car Insurance Fraud Ring
LOS ANGELES (CBSLA.com) — More than a dozen members of the same family suspected to be part of a car insurance fraud ring were arrested Thursday morning, state Department of Insurance officials said.
Edwin Bautista, 41, of Sylmar, and Luis Bautista, 32, of Pacoima, are believed to be the ring leaders of an organized family insurance fraud ring, in which the suspects intentionally crashed into cars and coached accomplices on how to fake injuries and file fraudulent insurance claims to get cash payments from insurers for bodily injuries and property damage, according to the Department of Insurance.
The Bautista brothers, along with 27 accomplices, allegedly filed 18 fraudulent auto insurance claims between March of 2011 and August of 2013, totaling more than half a million dollars. According to the Department of Insurance, 11 insurance companies, including State Farm and Mercury, paid out more than $235,000 in claims before the fraud was uncovered.
"Insurance fraud is a multi-billion dollar criminal enterprise in California and Los Angeles is ground zero in our battle to combat these crimes," Insurance Commissioner Dave Jones said in a statement. "Every consumer pays for fraud through higher insurance premiums, as insurers pass along the cost of the losses to policyholders."
The brothers, along with 13 other family members, were arrested at various Southern California locations and booked into Los Angeles County Jail. Four suspects are still being sought, and 10 more are arranging to surrender to authorities.
