Officials Crackdown On Auto Insurance Fraud

RANDOLPH, Mass. -- A new crackdown on auto insurance fraud is under way. The taskforce is looking at one community that seems to have a significantly higher injury rate than the rest of the state.

NewsCenter 5's David Boeri reported Thursday that the town of Randolph and its drivers are the latest to draw the suspicion of insurance investigators, and now there's a sign posting a reward for those who drop a dime.

"For every 100 accidents, 56 people claim that they've been injured. On a statewide basis, for every 100 accidents, 36 people claim they are injured," said Daniel Johnston, of the Insurance Fraud Bureau.

That dramatic difference, as well as higher rates of auto theft and accidents, came as a surprise to the local police.

"We just do the accident reports, and then that is the end of our involvement. People claim no injuries at them time, and then later claim injuries that we may be totally unaware of," Randolph Police Department Chief Paul Porter said.

What's suspected is a repeat of widespread fraud alleged and charged in Lawrence, Mass., where lawyers, doctors, chiropractors and others are scheduled for trial after being charged last December. A similar task force in Lawrence found widespread evidence of accidents that never happened.

"They are fake or they are accidents where people staged an accident or crashed cars together on purpose, and it is those we are looking closely at," Johnston said.

The anti-fraud task force will involve the District Attorney and police. Officials said that they've recently put five insurance cases under the scope to check them out for fraud.