Michigan man sentenced for role in fake car-crash scheme

A participant in a ring that staged auto accidents for insurance money is headed to prison for more than three years

Michigan man sentenced for role in fake car-crash scheme

Insurance News

By Ryan Smith

A Michigan man has been sentenced to more than three years in federal prison for his role in a conspiracy that staged auto accidents in order to scam insurance companies.

Marvin David Ramirez, 45, was sentenced to 37 months in prison for the crime which operated out of Primary Rehab Center in Wyoming, according to an STL News report. Ramirez was also ordered to pay restitution of $298,992.29.

“Ramirez and his cohorts operated a sophisticated scheme over several years in our community,” said US Attorney Andrew Byerly Birge. “The well-deserved sentence imposed by the court reflects the leadership role played by Ramirez and the fact that he greatly profited from this fraud at the expense of Michigan’s automobile insurance system.”

According to STL News, the fraud ring operated from December 2011 to May 2014. The conspirators recruited and paid people to stage car accidents and obtain police reports so that claims could be made to their insurance companies. Clinic managers and others who participated in the scam told the people what symptoms to fake so they could get a prescription for physical therapy.

The accident participants then received unnecessary treatment at the clinics, according to STL News. After a few sessions, the scammers would generally sign blank therapy treatment forms to make it appear that they received treatment they did not. The scammers billed auto insurers more than $1 million and obtained fraudulent payments of more than $600,000, according to the report.

The sentencing of Ramirez completes a multi-year prosecution of people involved in the scam, STL News reported.


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