U.S. Sen. Ashley Moody, R-Fla., introduced legislation on Wednesday targeting staged crashes involving commercial motor vehicles. The Staged Accident Fraud Prevention Act would make intentionally causing such a collision a federal crime. The proposal also covers individuals who organize or arrange these schemes, meaning attorneys, physicians, and other knowing co-conspirators could face prosecution.

Currently, no specific federal statute criminalizes staged crashes involving commercial vehicles. Prosecutors have relied on fraud, conspiracy, and wire fraud charges to pursue such cases — tools that carry their own penalties but were not designed to address the physical danger and supply-chain disruption created when drivers deliberately collide with tractor-trailers on public highways.

Federal Penalties Established Under the Bill

Under the proposal, a participant could receive up to 20 years in federal prison. Organizers would face the same maximum punishment as drivers. Cases involving 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," she added.

Moody also addressed the potential consequences for participants directly: "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, designated H.R. 2662. The House referred that measure to its Judiciary Committee.

Industry Support

The Owner-Operator Independent Drivers Association (OOIDA) endorsed Moody's legislation.

"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."

Several transportation and business organizations also support the proposal, including the American Trucking Associations, the Florida Trucking Association, the National Motor Freight Traffic Association, and the Transportation Intermediaries Association. The U.S. Chamber of Commerce's Institute for Legal Reform backed the legislation as well. Additional supporters represent the insurance, warehousing, food distribution, and motorcoach industries.

Louisiana Case Involved 31 Staged Crashes

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 and 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 retained about $358,000 in legal fees. Court filings accused plaintiffs of providing false testimony and claiming fabricated injuries.

FreightWaves has been covering the Louisiana staged accident scheme for several years. The first criminal trial arising from the various indictments recently began in a New Orleans courtroom.

https://x.com/FreightWaves/status/2030758703406751787

The Louisiana prosecution illustrates the current enforcement patchwork. The Keating case advanced under wire fraud conspiracy — a general-purpose statute that addresses financial deception but does not separately capture the physical risk of deliberately crashing into a moving truck. Moody's bill would give prosecutors a dedicated charge reflecting both the fraud and the endangerment, with enhanced mandatory minimums when victims suffer serious injury or death. For carriers already contending with rising litigation costs and insurance premiums, the measure signals a potential shift toward federal-level deterrence rather than reliance on case-by-case state and federal fraud prosecutions.