House Republicans informed Attorney General Pam Bondy that illegal immigrants have infiltrated sophisticated criminal networks in the U.S., staging accidents and injuries to exploit the personal injury system.
In a letter, led by Rep. Mike Collins (R-GA), they emphasized that personal injury fraud is becoming a significant industry in the U.S. and needs urgent action from the Department of Justice (DOJ).
“These fraudulent schemes are a threat to public safety, elevate consumer costs, and drive up insurance premiums for the public,” Republicans stated. “Insurance fraud is estimated to cost around USD 300 billion annually, including $45 billion from property and casualty fraud. Most concerning is that these activities endanger innocent drivers, potentially leading to injury or death.”
During a federal investigation, 63 individuals, including plaintiffs’ attorneys, faced charges linked to a criminal operation in Louisiana related to commercial trucks.
Republicans noted that illegal immigrants are also benefiting from these schemes.
Additionally, illegal immigration seems to be intertwined with these schemes to help repay debts to cross-border coyotes. Numerous cases indicate misuse of immigration statuses in the personal injury system. Some plaintiffs are reportedly turning to litigation loans and workers’ compensation to cover debts incurred for human smugglers.
For instance, in February 2023, Angel Peralta Ordonez, an undocumented immigrant from Ecuador, filed a workers’ compensation claim just two months after arriving and used that money to pay off a $21,000 debt with $15,000 in loans and $6,000 from workers’ comp. Additional reports suggest that MS-13 gang members and Russian criminal networks are orchestrating fraudulent injury claims, misleading immigrants to inflate lawsuit settlements.
In light of these findings, Republicans urged Bondi to establish a DOJ task force dedicated to investigating and prosecuting such fraudulent personal injury schemes.
Lance Gooden (R-TX), Tony Weed (R-WI), Tom Barrett (R-MI), Glenn Grossman (R-WI), Tom Tiffany (R-WI), and Jimmy Patronis (R-FL) were among those who signed the letter.
