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The practice of staged automobile collisions skyrocketed in Southern California in the mid-1990s, according to John Standish, former chief of the Fraud Division of the State of California Department of Insurance. Speaking with a group of leading fraud investigators in Florida, Standish attested that at least 25 percent of the workload for an adjuster or claims representative contains some form of fraud. This paper summarizes Standish's presentation along with a surprise guest – the fraud ring leader Standish brought down after a five-year undercover investigation. Having paid his debt to society, the ring leader now tells insurance companies how he was able to steal so much money from them, who does it and why it's so easy.
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