Monday, December 19th, 2005

Monthly Newsletter

Volume 5 Issue 8 


23 Arrested In Insurance Fraud Ring Bust

 

"the investigation continues and more arrests likely will be made. The probe is looking into doctors and chiropractors who may have been involved in the scam"

[Advisor Home]

 

Officials report 23 people have been arrested for allegedly participating in an insurance fraud ring that staged more than 60 auto collisions on Southern California freeways and bilked about three million dollars from insurers.

State Insurance Commissioner John Garamendi made the announcement at a Los Angeles news conference Wednesday. He said fraud investigators, after a seven-month investigation, arrested Huntington Park lawyer Bernard Laufer as the alleged ringleader.

Laufer was arrested Tuesday and faces charges of insurance fraud, grand theft and conspiracy.

Garamendi says the investigation continues and more arrests likely will be made. The probe is looking into doctors and chiropractors who may have been involved in the scam.

In April, the California Department of Insurance received a tip that Humberto Carlon of La Verne was recruiting people to participate in staged collisions. Carlon was arrested early in the investigation and has been sentenced to two years in state prison for his involvement.