Staged truck crashes could become a federal crime punishable by up to 20 years in prison under legislation introduced by U.S. Sen. Ashley Moody, R-Fla., directly targeting fraud that drives up insurance premiums and endangers truck drivers.
Legislation Details and Penalties
The Staged Accident Fraud Prevention Act, introduced Wednesday, would make intentionally causing a collision with a commercial motor vehicle a federal crime. According to the proposal, a participant could receive up to 20 years in federal prison. Organizers would face the same maximum punishment as drivers. Serious bodily injury or death would trigger a minimum 20-year sentence. Courts could also impose fines under Title 18.
"Anyone who stages or helps stage an accident with a commercial motor vehicle endangers people's lives and livelihoods," Moody said. "On top of that, these stunts run up insurance premiums for everyone." Moody also addressed the potential consequences for participants: "This legislation sends a clear message: if you do this, you will be prosecuted."
Reps. Mike Collins, R-Ga., and Brandon Gill, R-Texas, introduced companion legislation in April 2025. Their proposal carries the number H.R. 2662. The House referred that measure to its Judiciary Committee.
Industry Support
| Organization | Position |
|---|---|
| Owner-Operator Independent Drivers Association (OOIDA) | Endorsed the legislation |
| American Trucking Associations | Supports the proposal |
| Florida Trucking Association | Supports the proposal |
| National Motor Freight Traffic Association | Endorsed the measure |
| Transportation Intermediaries Association | Endorsed the measure |
| Other insurance, warehousing, food distribution, and motorcoach organizations | Also support |
"Staged accidents are not victimless crimes," said Lewie Pugh, OOIDA's executive vice president. "These are calculated, premeditated assaults that endanger lives, destroy livelihoods, and compromise highway safety." Pugh said criminals "abuse the legal system for profit through false accusations and lawsuits" and that those lawsuits "contribute to skyrocketing insurance premiums for small trucking businesses." OOIDA represents nearly 150,000 members, according to the organization. Pugh said those members "support Senator Moody and her commonsense legislation" and that the measure would protect truckers from "sophisticated criminal fraud schemes."
Real-World Case: Louisiana Fraud Investigation
Moody's office cited a Louisiana fraud investigation in its announcement. Attorney Danny Patrick Keating pleaded guilty to conspiracy to commit wire fraud in 2021. Keating admitted paying Damien Labeaud to stage 31 tractor-trailer crashes. He represented 77 plaintiffs connected with those collisions.
Keating settled 17 of the 31 fraudulent cases, according to the Justice Department. Prosecutors linked those settlements to approximately $1.5 million in payments. Keating kept about $358,000 in legal fees. Court filings accused plaintiffs of providing false testimony and claiming fabricated injuries.
Implications for Logistics Operators
The bill would create a specific federal crime covering drivers, organizers, and knowing co-conspirators. For freight forwarders, carriers, and 3PLs, this legislation offers a federal tool to combat staged crashes that expose carriers to fraudulent claims, legal costs, and higher insurance premiums. OOIDA's Pugh emphasized that staged crashes are not victimless crimes, and the measure aims to protect truckers from sophisticated fraud schemes. If enacted, the act could help reduce the financial burden of fraudulent lawsuits on small trucking businesses and the broader logistics industry.
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