Staged truck crashes could bring 20 years in federal prison under new bill

Reps. Mike Collins, R-Ga., and Brandon Gill, R-Texas, introduced companion legislation in April 2025. Their proposal carries the number H.R. 2662. The House referred that measure to its Judiciary Committee.

OOIDA supports the proposal

The Owner-Operator Independent Drivers Association 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.”

Pugh said 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.” He said the measure would protect truckers from “sophisticated criminal fraud schemes.”

Several transportation and business organizations also support the proposal. They include the American Trucking Associations and Florida Trucking Association. The National Motor Freight Traffic Association and Transportation Intermediaries Association also endorsed the measure. Other supporters represent insurance, warehousing, food distribution and motorcoach organizations.

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

Why it matters

Staged crashes endanger truck drivers and expose carriers to fraudulent claims, legal costs and higher insurance premiums. The legislation would create a specific federal crime covering drivers, organizers and knowing co-conspirators.

Click here for more articles on cargo theft and freight fraud by Phil Brink.

UPS labels allegedly diverted $2 million in Nike shoes, indictment says – FreightWaves

Truck tractors hauled 132 pounds of cocaine to Florida, sheriff says – FreightWaves

FBI says billion-dollar criminal network included cargo theft – FreightWaves