Staged crashes - a tool for insurance fraud that authorities say is a growing problem across the country. Friday - Metro Police along with the state's insurance commissioner took a man into custody that they say was the ringleader of a group defrauding insurance companies locally.
A pre-dawn knock at the door of 29 year old Joseph Morris, Jr. marked the end of what authorities are calling a fraud ring operating here in Savannah.
“Allegedly what this individual was doing was running a fraud ring with a lot of his friends - various associates - they allegedly would purchase automobiles that already had damage to them and they would fake accidents,” said Georgia Insurance Commissioner John Oxendine. Authorities say 16 claims for damage were reported to multiple insurance companies totaling nearly 95-thousand dollars. Oxendine says insurance fraud is a serious crime on the rise in a bad economy, “We wanted to send the message - especially in these difficult times because we're seeing an increase in insurance fraud…most people start off this way - where it's them and a few buddies, and they're doing nickel and dime stuff - then they find out how this system works and they can make more money and that's when they end up on interstate 16 faking an accident.”
Potentially hurting innocent victims..but - even if you aren't the direct victim of a staged crash - the Commissioner says we all pay in the end, “Insurance fraud is just like going to the store. If you go to the mall and you steal a sweater - the store doesn't pay for it. We all pay for shoplifting - we know that, because the store charges us higher prices - the same with insurance.”
Morris has been charged with 5 counts - 3 for insurance fraud, 2 for false reports to police. Insurance fraud is a felony which carries a penalty of 2 to 10 years in prison and a fine of up to 10-thousand dollars.
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