The American Tort Reform Association on Wednesday endorsed a new Senate bill that would make it a federal crime to stage crashes involving commercial motor vehicles and hold a wider circle of participants accountable.
Sen. Ashley Moody, R-Fla., introduced the Staged Accident Fraud Prevention Act on July 22, 2026. The measure targets not only the individuals who engineer the collisions but also the attorneys, physicians, and other co-conspirators who knowingly take part in the schemes.
“Staged accident fraud is a brazen form of lawsuit abuse that endangers lives, drains pocketbooks, and rewards the very trial lawyers who orchestrate these schemes,” said Tiger Joyce, president of ATRA. “Senator Moody’s bill gives federal prosecutors the tools to hold every conspirator accountable — from the ‘slammers’ behind the wheel to the billboard lawyers who profit from the courtroom.”
ATRA describes the problem as a growing “fraudemic” that is especially acute in states the group has long labeled Judicial Hellholes®. Louisiana and New York stand out as active centers of the activity.
In Louisiana, a federal probe known as Operation Sideswipe uncovered extensive fraud involving staged accidents with big rigs in the New Orleans area. At least 63 individuals have been charged, and 49 have been convicted, according to the U.S. Attorney’s Office for the Eastern District of Louisiana.
“When trial lawyers and their co-conspirators engineer crashes to manufacture lawsuits, real people pay — through higher insurance premiums, pricier goods, and a legal system twisted to serve greed instead of justice,” Joyce said. “Senator Moody’s bill is exactly the kind of commonsense reform the civil justice system needs.”
In New York City and across the state, attorneys and healthcare providers have exploited no-fault insurance rules through faked crashes and unnecessary medical procedures. The pattern has contributed to Democratic Gov. Kathy Hochul’s push for reforms this year to address rising insurance rates. In 2023, New York recorded 1,729 staged vehicle accidents, the second-highest total in the country, according to the state’s Department of Financial Services.
The Senate bill serves as a companion to House legislation introduced in 2025 by Reps. Mike Collins, R-Ga., and Brandon Gill, R-Texas. It imposes criminal penalties on those who stage collisions and on professionals who knowingly participate.
ATRA cites broader data showing that excessive tort costs amount to a “tort tax” of $1,771 for every American each year and contribute to the loss of more than 5 million jobs annually. The group’s report, “Sanctionable: The unsupported, exaggerated, and suspicious claims plaguing our nation’s courts,” examines the wider pattern of problematic claims.
ATRA is calling on the Senate Judiciary Committee to advance the Staged Accident Fraud Prevention Act without delay.
© Josué Sánchez