The New York State Department of Financial Services reported that two Brooklyn men received prison sentences for orchestrating three staged vehicle collisions on New York City highways and seeking fraudulent insurance payouts. Jaime Huiracocha was sentenced to one to three years in prison, while Victor Murillo received a two-year prison sentence, with additional concurrent terms for related offenses. Department investigators assisted the New York Police Department in uncovering the scheme, which involved recruiting participants, deliberately causing collisions and directing purportedly injured occupants to specific medical clinics. The announcement also highlighted previously enacted fiscal 2027 budget reforms targeting staged accidents and fraudulent claims, including broader criminal liability for organizers, limits on certain damages, tighter serious-injury standards, stronger rate oversight and restrictions on using factors such as homeownership, education or ZIP code to set insurance rates. The department issued implementation guidance in July.
2026-08-27New York State Department of Financial Services
New York State Department of Financial Services supports staged crash fraud case resulting in prison sentences
The New York State Department of Financial Services supported an investigation that led to prison sentences for two men who orchestrated three staged highway crashes and sought fraudulent insurance payouts. The announcement also highlighted previously enacted auto insurance reforms, including broader liability for staged-accident organizers, damages restrictions and tighter oversight of insurance rates.