Fake crash crooks cash in on no-fault insurance

WYOMING, Mich. (WOOD) — The car crashes weren’t real and the patients didn’t actually have any injuries, but the people behind an elaborate fraud scheme made off with more than a million dollars.

Ringleaders out of Florida exploited a loophole in Michigan’s no-fault automotive insurance system in the kind of fraud that drives up premiums for everyone.

Starting more than four years ago, drivers recruited to the scheme would crash into trees, deliberately run off the road or say an animal hit their car.

When Target 8 investigators asked one of those drivers why he did it, he replied, “I don’t know.”

“No reason,” Alex Watters continued. “I don’t know why. Stupid. Dumb.”

Watters was down on his luck and making some cash for staging a fender bender was enticing.

Full Story: WOOD TV

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