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16 arrested in New York auto insurance fraud crackdown involving nearly $500K
By
Giulia Heyward
Published Oct 20, 2026 at 6:34 p.m. ET
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Susan Watts/Office of Governor Kathy Hochul
By
Giulia Heyward
Published Oct 20, 2026 at 6:34 p.m. ET
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New York officials said they arrested 16 people for their alleged involvement in auto insurance fraud schemes involving nearly $500,000 in attempted fraudulent claims statewide.
Officials said seven arrests were in the Bronx, the most in any county. The remaining arrests were made in connection with cases in Brooklyn, Queens, Staten Island, Suffolk, Onondaga, Monroe and Erie counties, Gov. Kathy Hochul's office said Tuesday.
As New Yorkers face rising living costs, the state has taken steps to confront insurance fraud, including staged crashes and fraudulent claims, that officials said contribute to higher premiums.
New York has expanded criminal penalties to include people who organize staged car accidents, not just those behind the wheel, and strengthened oversight of insurance rates.
The arrests announced Tuesday involved 31 charges, including 29 felonies and two misdemeanors.
“I have no tolerance for any individuals who commit fraud in ways that drive up costs for others or abuse public dollars for their own personal gain,” Hochul said at a press conference. “And I've used every tool in my arsenal to stop exactly that.”
Hochul referred to a December 2025 incident in Brooklyn in which investigators said a driver deliberately cut in front of another car at an intersection, causing a crash.
Investigators said the driver then falsely accused the other motorist of running a stop sign and collected more than $16,000 in medical insurance claims. Investigators arrested the driver and charged them with insurance fraud and other offenses.
“Now, by taking down these individuals, we expect that — as well as the insurance reforms that we were successful in securing in our latest budget — those combined will start to lower auto-insurance rates in the near term,” Hochul said.
Hochul said New York has seen a triple-digit increase in staged crashes related to fraud over the past five years. The state recorded 1,700 such incidents in 2023, the second-highest number in the country, according to the governor.
The arrests were part of joint investigations involving New York State Police and the state Department of Financial Services. Officials said additional investigations are underway.
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new york state
public safety
Giulia Heyward
Giulia Heyward is a breaking news reporter on the Day-Of desk. She previously worked at NPR, as a breaking news reporter, and the New York Times, as a reporting fellow on the national desk. Her work has also appeared in CNN, The Atlantic and Politico. Got a tip? Email [email protected] or more securely on signal at 917-715-1458.
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