Queens District Attorney Katz and New York Governor Hochul announced on August 27 that two men who caused car accidents on New York City highways and engaged in insurance fraud schemes have been sentenced to prison. The state government stated that this type of insurance fraud has been increasing in recent years, posing risks to road safety and driving up insurance costs for car owners. New York State has recently amended laws to strengthen the prosecution of masterminds behind such schemes and to promote lowering improper claims and insurance premiums.
The breakthrough in the case came from a viral dashcam video on social media. On October 16, 2024, a 31-year-old woman from Queens was driving near Rosedale on the Belt Parkway when defendant Murillo abruptly cut in front of her car and slammed on the brakes. The woman managed to stop her car in time, but he reversed and hit her. He then got out of the driver’s seat, moved to the passenger seat, exited the vehicle, and got into a getaway car, while others at the scene pretended to be injured.
Katz noted that after seeing the viral video, the prosecution quickly contacted law enforcement agencies to investigate the individuals involved, their vehicles, and insurance claims, leading to the discovery that Murillo was also involved in two previous staged accidents.
Investigations revealed that mastermind Huiracocha recruited drivers and passengers for $500 each to participate in the staged accidents. He would follow in another car and instruct Murillo on when to cause the collisions. After the accidents, Murillo would leave in the getaway car, leaving behind individuals pretending to be injured, who would then go to specific medical clinics as directed to file insurance claims based on fabricated injuries.
Katz emphasized that staged accidents not only endanger road safety, but false claims for car damages, medical expenses, and injuries also increase overall insurance costs, ultimately shared by policyholders through premiums.
Governor Hochul stated that over the past five years, staged accidents in New York State have increased by about three times, with approximately 1,700 cases reported in 2023, ranking second nationwide. In 2025, the Department of Financial Services (DFS) received around 43,000 reports of suspicious automobile insurance activities, an 80% increase over five years.
To combat the escalating issue of auto insurance fraud, New York State has amended laws this year to expand criminal liability for individuals who employ, encourage, or orchestrate others to stage accidents. Penalties have been increased, a cross-departmental task force has been established, and fraud investigations have been strengthened. Reforms have also tightened certain rules on personal injury claims from car accidents, requiring insurance companies to reflect anticipated savings in claims costs in premiums.
The state estimates that such fraud could increase the average annual cost of each auto policy in New York by up to $300. Governor Hochul mentioned that just months after the new law took effect, one of her staff members informed her that their premiums had already decreased by $100. She anticipates that these reforms will lead to further decreases in premiums.
The investigation into the case is ongoing. Law enforcement officials are investigating potential involvement of doctors, lawyers, and auto repair shops in the insurance fraud cases. Katz stated that anyone involved in fraud or submitting false documents will be held accountable.