California’s auto insurance fraud laws are neither fair nor just. The penalties for defrauding an insurance company are much higher than those of other theft crimes. This discrepancy reflects the might of the insurance industry in the state. Many people are wrongly accused of fraud, and others face a lifetime of consequences for one bad choice.
Don’t let a fraud accusation ruin your life. You need to talk to an auto insurance fraud lawyer in Los Angeles. At the Simmrin Law Group, we know how to win against fraud cases. We have built our reputation on successfully defending the accused, no matter the circumstances.
What Counts as Auto Insurance Fraud in Los Angeles?
Auto insurance fraud can be committed by the person who has the policy on the car (usually the car owner), healthcare providers, auto repair shops, or anyone else who stands to gain from a car insurance policy.
Examples of auto insurance fraud can include:
- Setting up a “staged” car accident to submit a personal injury claim for fake damages
- Intentionally damaging your own vehicle to collect money from the policy
- Abandoning or hiding your vehicle to report it “stolen” and collect money
- An auto shop that claims damages are more severe or costly than they are in order to get paid more
- Auto shops attempting to bribe insurers to get all their business sent to their shop
- A healthcare provider who submits a fraudulent bill or alters medical records to collect more money
- Submitting a false claim, submitting false statements as part of a claim, or submitting multiple claims for the same accident
Each of these cases technically counts as auto insurance fraud. However, some of them are charged differently than others, and each carries its own penalties. No matter which charge you face, you’ll need an auto insurance fraud lawyer in Los Angeles in your corner.
For a free legal consultation with a auto insurance fraud lawyer serving Los Angeles, call (310) 896-2723
What Penalties Do I Face for Auto Insurance Fraud in Los Angeles?
Because insurance fraud is often financially motivated, it is considered a “white-collar crime.” But the penalties you face will depend on the specifics of your situation. There are several different kinds of auto insurance fraud, and each type is punished differently. Here are some of the most common types of auto insurance fraud and the penalties that a conviction can bring.
Damaged or Abandoned Your Own Vehicle
If you damaged or abandoned your own car to collect insurance money, you will be charged under California Penal Code Section 548. A violation of this statute is a felony. The prosecutor or insurance company will rely on an auto appraiser or other expert to prove that the damage is not related to what you said in your claim. Penalties for this offense can include:
- Up to five years in prison
- A fine of up to $50,000
- Formal probation
Additionally, you could be sentenced to extra prison time if you have a prior felony conviction for auto insurance fraud. For each prior conviction, two more years will be added to your sentence.
An Auto Body Shop That Exchanged a Bribe With an Adjuster
If you are an auto body shop that offered bribes to an adjuster or an adjuster who offered to refer business in exchange for a bribe, you will be charged under California Penal Code Section 549. A violation of this statute can be a felony or a misdemeanor.
Misdemeanor penalties for this offense can result in:
- Up to one year in jail
- A fine of up to $1,000
- Summary probation
Felony penalties for this activity are much harsher and could mean you will face:
- Up to three years in prison
- A fine of up to $50,000 (or twice the value of the fraud, if that is higher)
- Formal probation
False Claims for Theft or Damage
If you made a false claim for theft or damage, you will be charged under California Penal Code Section 550(a)(4). This could be because you did the damage yourself or because it actually came from a prior (unrelated) accident.
This type of fraud could also involve a claim for stolen goods that were never actually stolen from the vehicle. This same section of the penal code is also used if you submit more than one insurance claim for the same damage.
These charges are always a felony, and penalties may include:
- Up to five years in jail
- A fine of up to $50,000 (or twice the value of the fraud, if that is higher)
- Formal probation
False Statements Related to an Auto Insurance Policy
If you made false statements related to an auto insurance policy, you will be charged under California Penal Code Section 550(b)(1)-(4). A violation of this statute can be a felony or a misdemeanor.
This offense can include making false or misleading statements about the specific facts of a claim, either as part of the claim or in opposing it. It can also mean making false or misleading statements about your state of residence when applying for California insurance. The comments can be oral or written.
Misdemeanor penalties for this offense can be as high as:
- Up to one year in jail
- A fine of up to $10,000
- Summary probation
Felony penalties increase to:
- Up to five years in prison
- A fine of up to $50,000 (or twice the value of the fraud, if that is higher)
- Formal probation
A Staged Accident
If you staged an accident to collect insurance money, you face particularly steep consequences under California Penal Code Section 550(a)(3). A violation of this statute is always a felony. Insurance adjusters actively look for signs of a staged accident. They may make an accusation even if the accident was legitimate.
Adjusters also often fail to detect when an accident really was staged. They will rely on auto collision experts, eyewitness testimony, evidence at the scene, signs that reports or medical diagnoses related to the accident are not legitimate, or other tactics to prove their case. You can be convicted even if no money was ever collected.
The penalties for staging an accident can include:
- Up to five years in prison
- A fine of up to $50,000 (or twice the value of the fraud, if that is higher)
- Formal probation
Beyond these standard penalties, there are many things that can result in sentence enhancements, including additional years being added to a sentence in these fraud cases. You may face:
- An extra two years for every prior auto insurance conviction on your record
- An additional five years if you have two (or more) prior convictions specifically for staging an accident
- An extra two years for each person who was badly hurt in the staged accident
- An additional three years if you yourself caused a serious injury to someone during the staged accident
Working with the Los Angeles auto insurance fraud attorneys at Simmrin Law Group will help you have ground to stand on when fighting your charges. We can help to reduce or eliminate them altogether.
Los Angeles Auto Insurance Fraud Lawyer Near Me (310) 896-2723
Defenses Against an Auto Insurance Fraud Charge
Because the laws and penalties for auto insurance fraud are so complex, it’s very hard to fight the charge without legal help. If you have been accused, you should talk to a white-collar crime lawyer in Los Angeles, CA, as early in the process as possible and decline to answer questions until your lawyer is present.
There are several possible defenses that you could use against an insurance fraud charge. Your lawyer will review your case and advise you about which argument has the highest likelihood of succeeding in your case. Some of the most common defenses used against auto insurance fraud charges are:
- Lack of intent
- Mistaken identity
- Duress
- Entrapment
Lack of Intent
To be guilty of auto insurance fraud, you must have knowingly and willingly committed a fraudulent act. Simply making a mistake is not committing fraud. While you could still be liable for paying back extra money you may have received due to this mistake, you are not guilty of fraud.
Mistaken Identity
Many forms of insurance fraud are committed without any witnesses. This crime often occurs through the simple act of recording false information on paperwork. It is generally difficult to prove who actually filled out and filed the paperwork. Another party could have easily completed the forms and forged your signature.
Duress
A defense of duress can be used if you were forced into committing fraud by another party under threat. If somebody pressured you to break the law by threatening to hurt you or a loved one if you did not comply, this can be a strong defense to use against a charge.
Entrapment
If the idea to commit a fraudulent act originated from a member of law enforcement, you could use a defense of entrapment. Entrapment can occur in many different ways. An undercover agent may attempt to push you into a criminal act so that they can make an arrest. Additionally, an officer could ask you to submit a fraudulent document to help with an investigation.
Other Defenses
These are just a few of the dozens of defenses that may be available in your case. Your attorney can help advise you about the best approach for your situation.
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Talk to a Los Angeles Auto Insurance Fraud Lawyer for Free
If you have been charged with auto insurance fraud, you don’t have to face your case alone. Let the experienced attorneys of the Simmrin Law Group help you. We understand fraud cases, and we have a history of winning.
When you call us, we will listen to you, take your side, and fight for you as if you were a member of our own family. Let us help you fight this charge. Give us a call or fill out our online contact form to schedule a free, no-obligation consultation. One of our Los Angeles auto insurance fraud lawyers will review your case and advise you of all your legal options.
Call or text (310) 896-2723 or complete a Free Case Evaluation form