New York Cracks Down on Alleged Insurance Fraud Ring

State takes action after 80% rise in suspected motor vehicle insurance fraud since 2020.

Published on Feb. 19, 2026

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An alleged insurance fraud ring in New York has been shut down after a state judge issued a summary judgment against a group of defendants accused of organizing staged car crashes to receive payouts from insurers. The judgment found the crashes were intentional and fraudulent, with the defendants working with medical offices to bill insurers for unnecessary treatments. New York's governor is now proposing measures to further crack down on automotive insurance fraud, which has spiked 80% in the state since 2020.

Why it matters

Insurance fraud drives up costs for all policyholders, not just insurers. This case highlights the growing problem of staged accidents and fraudulent claims in New York, which has seen a dramatic rise in suspected motor vehicle insurance fraud in recent years. The state's efforts to address this issue aim to protect consumers from the financial burden of these criminal activities.

The details

The alleged fraud ring staged a series of eight car crashes in New York City and the surrounding suburbs in 2023, involving three occupants per vehicle who were then treated at specific medical offices that billed the insurer, Integon National Insurance Company. The crashes followed a pattern, with the vehicles being rear-ended by box trucks or commercial vehicles, and the insurance policies being taken out just weeks before the incidents. The judge found the defendants ineligible for any payouts, stating that insurance fraud is not a victimless crime and hurts all policyholders.

  • The crashes occurred in 2023.
  • The New York Supreme Court judge issued the final disposition on January 20, 2026.
  • New York governor Kathy Hochul announced new measures to crack down on insurance fraud on February 11, 2026.

The players

Integon National Insurance Company

The insurer that was targeted by the alleged fraud ring.

New York Supreme Court Justice Maureen T. Liccione

The judge who issued the summary judgment against the defendants.

New York Governor Kathy Hochul

The governor who announced new measures to address the rise in automotive insurance fraud in the state.

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What they’re saying

“The Court will preface this summary judgment analysis with the statement that insurance fraud is not a victimless crime. Because premium increases partly incorporate fraud costs, insurance fraud hurts all policyholders, not just insurers.”

— New York Supreme Court Justice Maureen T. Liccione, Judge (Court documents)

“For most people, car insurance isn't a luxury—it's a necessity, especially here on Long Island where people rely on their cars to get to work, get to school or even go grocery shopping. These common sense proposals will crack down on the bad actors that are driving up the cost of car insurance and putting that financial burden on innocent, hardworking New Yorkers.”

— Kathy Hochul, Governor of New York (Press conference)

What’s next

New York's governor is lobbying to increase the time frame for consumers to report fraud, cap non-economic damages for drivers engaged in criminal behavior, and limit payouts for drivers deemed mostly at fault in a crash.

The takeaway

This case highlights the growing problem of staged accidents and fraudulent insurance claims in New York, which have driven up costs for all policyholders. The state's efforts to crack down on these criminal activities aim to protect consumers from the financial burden of insurance fraud.