Two men have been sentenced to prison for their roles in a staged auto accident scheme that prosecutors said deliberately caused crashes on New York City highways to generate fraudulent insurance claims.
Jaime Huiracocha, 53, and Victor Murillo, 34, pleaded guilty to charges tied to three crashes between August and October 2024. Queens prosecutors said Huiracocha recruited participants and followed in a separate vehicle while directing Murillo on when and how to cause collisions.
Investigators said Murillo would brake abruptly so motorists behind him would rear-end his vehicle. During one attempt, the targeted driver stopped in time, prompting Murillo to reverse into the vehicle to create a collision. Prosecutors said Murillo would then move from the driver’s seat to the passenger side and leave in a getaway vehicle. Two of the incidents were captured by dash cameras.
Passengers allegedly pretended to be injured following the collisions. Prosecutors said Huiracocha directed participants to specific medical clinics after the crashes, adding a bodily injury and medical treatment component to the alleged fraud operation.
For auto claims adjusters and special investigation units, the case highlights several potential indicators of staged losses. Those include sudden or unexplained braking, conflicting accounts about who was driving, occupants changing positions or leaving the scene, coordinated vehicles appearing immediately after a collision, multiple injury claims and patterns involving particular medical providers. Dashcam footage can also provide evidence that challenges an otherwise routine rear-end accident narrative.
Huiracocha received a sentence of one to three years in prison, while Murillo was sentenced to two years. Two other people who allegedly participated in the scheme have pleaded guilty and are scheduled for sentencing in September.
The case comes as New York moves to strengthen its response to insurance fraud. Gov. Kathy Hochul has backed reforms included in the state’s 2027 budget that are intended to reduce fraudulent claims and their impact on auto insurance costs. The measures have also drawn opposition from trial lawyers concerned about their effect on legitimate claimants.
