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LA attorney busted for accident insurance fraud scheme, faces 28 felonies

2010-04-02 04:50:15 (GMT) (JusticeNewsFlash.com - Insurance Litigation, Justice News Flash)

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Legal news for California insurance attorneys. LA attorney, office manager charged for participating in fake accident scheme.

A Los Angeles attorney is facing charges for her part in a insurance fraud scheme, involving accidents in Northern California.

Los Angeles, CA—The Alameda County Superior Court has charged a Los Angeles attorney with 28 felony counts for participating in an insurance-fraud scheme, which was allegedly staging car crashes across Northern California. The LA attorney’s office manager was charged as well, according to information provided by the Los Angeles Times.

Attorney Susana Ragos Chung, 59, and her office manager, Ingrid Attillo have been formally charged in connection with the fraud scheme. The Alameda County assistant district attorney, Larry blazer, stated Chung “acted as a conduit” for several years while involved in the staged car accidents. The fraud masterminds reportedly would recruit drivers and passengers who claimed they had been involved in the accidents. Noberto “Chito” Mora was found guilty and is serving an 8-year prison sentence for recruiting the fake crash victims.

After conducting an investigation, officials found an auto body shop who was submitting bogus repair records and doctors who drafted fraudulent medical documents. Chung would then pass along the false claims to various insurance companies for a payout. Chung apparently was paying Mora for the cases she received through the scheme. Chung then submitted the claims on behalf of the fraudulent clients, who she never even met or spoke to. Upon confrontation, many of these “victims” never even knew they had a lawyer. Police reports often did not have any sort of documentation of the crashes.

Ironically, Chung’s website boasts, “We pride ourselves in our honesty, integrity, detailed knowledge and real-world application of the law.” Further adding that her law firm “has successfully represented over thousands of clients and has recovered millions of dollars for its clients.”

Legal News Reporter: Nicole Howley-Legal news for California insurance lawyers.

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