Man Ordered to Repay Nearly $5 Million in Restitution

A Dallas-area man has been sentenced to nine years in federal prison and ordered to pay $4973,046 in restitution his role in running a staged traffic accident insurance scam since 2005.

From 2005 through 2012, Leroy Nelson defrauded auto insurance companies by submitting false and fraudulent claims for damage to various technical equipment in accidents that never happened. Nelson promised cash to individuals he recruited to report fictional accidents in which the driver had rear-ended a trailer or served to avoid something in the road and caused damage to items.

Anyone with information concerning insurance fraud or vehicle theft can report it anonymously by calling toll-free 800.TEL.NICB (800.835.6422) or submitting a form on our website.

About the National Insurance Crime Bureau: Headquartered in Oak Brook, Ill., the NICB is the nation's leading not-for-profit organization exclusively dedicated to combatting and preventing insurance crime through Intelligence, Analytics, and Operations; Education and Crime Prevention; and Strategy, Policy, and Advocacy. The NICB is supported by more than 1,200 property and casualty insurance companies and self-insured organizations. NICB member companies wrote over $582 billion in insurance premiums in 2021, or more than 82% of the nation's property-casualty insurance. That includes more than 96% of the nation's personal auto insurance. To learn more, visit www.nicb.org.