James William Lloyd, Jr., who was part of an organized insurance fraud ring that carried out multiple staged vehicle accidents on Florida’s east coast, was recently arrested in Maryland. Before his arrest, the 42-year old held the dubious distinction of being on Florida’s “Top 10 Most Wanted for the Division of Insurance Fraud.”
According to a recent news story in the Naples Daily News, Lloyd’s elaborate scheme involved having crash participants report the accidents to their insurance companies and then attend treatment sessions at a local medical clinic. An employee at that clinic, who knew Lloyd, would then help process fraudulent bills for phony treatments. Investigators found that participants would pass along the phony bills for reimbursement by their insurance companies—collecting the insurance money, giving Lloyd a cut and pocketing the rest.
Maryland authorities wanted Lloyd in connection to a separate theft ring case and discovered that he was also wanted for crimes in Florida.
According to Maj. Glenn Hughes of the Florida Department of Financial Services, Lloyd often scoped out bars, clubs and restaurants to find participants. Targets were often out of work or down on their luck and needed some extra cash. “He promised if they participated in one of these staged crashes, which are usually very minor, they’d make some money.”
Hughes believes that although some legislative changes have made a dent in insurance fraud in recent years, they do not eliminate fraud. One such law on personal injury protection (“PIP”), which went into effect in 2013, gives a shorter time limit and a smaller coverage limit for those in crashes.
However, “Staged crashes aren’t identifiable to the insurance carriers,” Hughes said. “They look like any other crash really, they’ll have a police report, they’ll have billings from a chiropractic or physicians clinic, so from an insurance company standpoint they’re very hard to detect.”
“It’s a problem that’s not going away,” he said.