Texas

U.S. Department of Justice
United States Attorney Richard B. Roper
Northern District of Texas
FOR IMMEDIATE RELEASE CONTACT: KATHY COLVIN
TUESDAY, OCTOBER 16, 2007
WWW.USDOJ.GOV/USAO/TXN PHONE: (214)659-8600
FAX: (214) 767-2898

RINGLEADER IN STAGED ACCIDENT CONSPIRACY PLEADS GUILTY
Conspiracy Caused More Than $1 Million in Losses to Insurance
Companies

DALLAS - The ringleader in a massive staged accident ring that operated
in the Dallas - Fort Worth (DFW) area since January 2000, and caused
more than $1 million in losses to victim insurance companies, pled guilty
to his role in the conspiracy, announced U.S. Attorney Richard B. Roper,
of the Northern District of Texas. Tuan (Andy) Nguyen, 32, pled guilty
before U.S. District Judge Jorge A. Solis to one count of conspiracy to
commit mail fraud and health care fraud and one count of conspiracy to
launder money. He faces a maximum statutory sentence of 40 years in
prison, a $500,000 fine and restitution. Nguyen has been in custody
since late May 2007 on charges outlined in a 71-count indictment
returned by a grand jury in Dallas. He is scheduled to be sentenced by
Judge Solis on January 23, 2008.

U.S. Attorney Roper said, "This guilty plea of the ringleader of this
massive and long-running staged accident scheme demonstrates federal
law enforcement's commitment to tackling the problem of insurance fraud
in North Texas."

Twenty-two defendants were charged in the indictment that brought to
light the massive staged accident scheme that had been operating in the
DFW area for approximately seven years. Nguyen admitted that he
orchestrated the conspiracy and conspired with others to defraud
numerous insurance companies by staging multiple motor vehicle
accidents schemes throughout the DFW metroplex that resulted in actual
losses to victim insurance companies of more than $1 million.
Twenty-one defendants have filed guilty pleas with the Court and are
awaiting sentencing. One defendant remains set for trial in February,
2008.

"Fraudulent insurance claims contribute to increased insurance premiums
that ultimately victimize the American public," said Fort Worth Division
Acting Inspector in Charge Barbara Meyer. "The U.S. Postal Inspection
Service is committed to ensuring the public's trust in the mail by
investigating these types of illegal schemes and putting the operators
behind bars."

Special Agent in Charge Robert E. Casey Jr., Dallas FBI, said, "I would
like to thank the Internal Revenue Service-Criminal Investigative Division
and the U.S. Postal Inspection Service who have provided their expertise
and dedication to this investigation. The FBI and its law enforcement
partners will continue to aggressively and pro-actively investigate these
complex conspiracies, ringleaders and criminal associates who are seeking
to defraud and exploit the medical and insurance industry and auto
licensing authorities."

"The guilty plea by Tuan (Andy) Ngyuen, as the organizer and leader of
the conspiracy of this massive staged accident scheme, has one common
thread with the other 20 guilty pleas in this investigation: the intent to
defraud, " said Erick Martinez, Special Agent in Charge of IRS Criminal
Investigation in the Dallas Field Office. Martinez continued, "IRS Criminal
Investigation will aggressively pursue fraudulent schemes and work with
other law enforcement agencies investigating the illegal activities from
both tax and money laundering perspectives to ensure that criminals are
held accountable."

Frederick P. Lohmann, Area Director for the National Insurance Crime
Bureau, said, "The National Insurance Crime Bureau and its 1000 plus
member companies wish to convey our sincere thanks to the men and
women of the IRS CID, FBI, Postal Inspection Service, and U.S.
Attorney's Office for their efforts of addressing insurance fraud in Texas.
It has been estimated that insurance fraud is a drain of $30 billion to the
nation's property and casualty insurance industry. This adds $200 - $300
to average consumers annual insurance cost - money that belongs in the
bank accounts of families and not in the pockets of scam artists and
criminals. It is both encouraging and gratifying to see the practitioners of
insurance fraud held accountable for their actions."

Nguyen was the organizer and leader of the conspiracy - he planned the
accident activity, recruited and paid accident participants, provided
automobiles, provided funding for automobile insurance, arranged for
chiropractic doctors and chiropractic facilities to be used by the accident
participants, selected paralegals and law firms for legal representation for
the accident participants, and controlled the majority of the funds
generated by the scheme. Fraudulent claims were filed with the
insurance companies by the insured, or by a law firm retained to
represent the insured. These claims included fraudulent bills for the
damage incurred by the vehicles in the staged accidents and claims for
injuries that never occurred, or were negligible but for which medical bills
had been created by chiropractors for the specific purpose of inflating
the number of treatments and the severity of the injuries.

Nguyen admitted that as part of the conspiracy he and others obtained
salvaged vehicles to be used in the purported accidents. Nguyen
re-titled the vehicles in Arkansas as a way of removing the "salvaged
vehicle" designation and for the specific purpose of fraudulently inflating
the vehicle's book value. The vehicle titles were hen transferred into a
coconspirator's name who was participating in the accident as the
driver/owner of the car. Insurance then was obtained on the vehicles to
be used in the accidents and for the individuals allegedly driving or
owning the vehicles. Nguyen admitted he dictated the type and limits of
the insurance obtained for the accidents, such as personal injury
protection, to enhance the possibility of payments by the victim
insurance companies for the alleged bodily injuries.

Nguyen admitted that, with the help of the other coconspirators, he
created the fraudulent accidents by either staging intentional and
controlled collisions of two vehicles to cause actual property damage, or
fraudulently reporting to victim insurance companies that an accident
had occurred by using two previously damaged vehicles to depict the
purported accident.

Nguyen admitted that after the "accident," he and other coconspirators
then would feign personal injuries as part of the scheme and obtain
medical treatment at clinics owned and operated by chiropractors
Nguyen knew in order to obtain medical bills that inflated the number of
treatments and the severity of the injuries. Nguyen admitted that some
of the chiropractors and their employees generated false medical and
billing records for submission to the victim insurance companies when no
treatments were provided or required.

U.S. Attorney Roper praised the investigative efforts of the Internal
Revenue Service - Criminal Investigation, the FBI and the U.S. Postal
Inspection Service. The case is being prosecuted by Assistant U.S.
Attorney Erin Nealy Cox.

http://dallas.fbi.gov/dojpressrel/pressrel07/accidentscheme101607.htm