A Special Report on Fraud

December 2006

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G U I D E

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D E T E C T I O N

A N D P R E V E N T I O N

Busted!
A Menace to Society Four suspects were arrested for staging an auto collision ring, dubbed "Operation Phantom Menace," which allegedly caused more than 100 collisions in the Bay Area, and resulted in more than $2 million in losses to insurers. Norberto "Chito" Diaz Mora, the alleged ringleader, was arrested on 140 felony counts involving insurance fraud. Also arrested were three chiropractors: David Wu; Reza Aliakbar; and Marcello Mehmandoust Each was charged vi/ith multiple felonies related to insurance fraud, Mora allegedly recruited people with policies covering bodily injury damages and instructed them to crash their vehicles in staged or paper-scripted collisions. The chiropractors are alleged to have knowingly billed the victims' insurance companies for services never rendered. The arrests were the result of a two year undercover investigation conducted by the California Department of Insurance's Fraud Division and the Bay Area Auto Fraud Task Force (BAAFF). Two undercover BAAFTF Investigators infiltrated the ring and identified the suspects. Law offices and an aiito-bodv repair shop also vi/ere found to be involved in the ring. If convicted, the suspects will be fined up to $50,000 and/or receive five years in prison or double the value of the fraud, whichever is greater. Crooked Hearts A police officer allegedly set an SUV on fire in order to get insurance money to buy a Cadillac Escalade. Elizabeth Lauren Anderson, 27, who joined the Brunswick, Md. Police Department Busted I p,
0 2 I DECEMBER 2006 Claims Magazine

The ABCs of Vehicular Collision Reconstruction

By Steven M. Schorr
he analysis of a vehicular collision involves applying of the laws of physics to physical e\'idence left as a result of a collision. Typically, this is completed in an effort to determine bow a collision occurred. The reconstruction analysis provides the special investigative unit manager, claim manager, investigator, and attorney with a foundation of reasonable theories when presenting or defending a case. Listed below are 26 reminders of items critical to the successful utilization of a collision reconstruction engineer in the analysis of a vehicular collision. lways collect avaiiai:)le data as early as feasible. The ability of any reasonable engineer to accurately reconstruct what
lag com

occurred during a collision is a function of the available physical evidence. Data such as tire marks, debris, roadway scrapes, and the resting pomts of objects involved in the collision are often short-lived. More data will be available for collection immediately after an accident.

efore committing to a tbeory, reconstruct how the collision occurred. All credible theories will flow from the collision dynamics. Attempting to evaluate the ments of a case without first finding out wbat actually occurred or wbat could have occurred could create problems, I omputere are mvolved in all aspects ' of our lives. Talk to your expert about

what kinds of data the computers compile, how to retrieve it. and how it might prove beneficial in the analysis of the collision. Additionally, ask your experts how they utilize computers in their analyses. It is henelicial to be cognizant of the merits of such usage.

of the strengths and weaknesses of a case. Be sure ihai all of the analyses and opinions prolTered are based on the available physical evidencc-

typically addressed by the traffic or highway safety engineer and the human factors expert.

ata is the foundation of the analysis. Critical data includes the points of rest of the vehicles, the damage to the vehicles, the location and t)'pe of debris left as a result of the collision, and the identification of the point of impact area. This data is the foundation of every- reconstruction analysis. xperts may be necessary to help evaluate, present, or defend a case, but be sure to utilize expens properly. For example, just because an expert is an engineer does not mean that he is an expert in all engineering areas. Typical disciplines incorporated into collision reconstruction include vehicle dynamics, the mechanical workings of the vehicle, driver responsibility and performanee, traffic engineering/highway safety, and human factors.

ather data empkning the threecomponent thought process. There are three components found in ever>' collision: the roadway, the vehicle, and the

Be sure that an expert has knowledge in the specific subject area relevant to the needs of the case and that his expertise is not peripheral.
driver. Without each of these three factors, there would nol have been a collision. Vse these elements as a guide to data collection throughout all phases of discovery.

nvestigate all possible data sources. This includes the police investigation, newspapers, stationary traffic ameras, surveillance cameras, dash-mounted police camenis. onboard computers, fire/rescue personnel, independent photographers, witnesses. Department of Transportation photographs and video-logs, and vehicle htstor)' data. ack-of-all-trades, Be aware that one person cannot be deemed an expert in all areas; there are specialists in al! professions. Be sure that an expert has knowledge in the specific subject area relevant to the needs of the case and that his expertise is not peripheral. A collision reconstruction expert can be an engineer, but an etigineer is not always an expen in collision reconsiruction. now your client, know your audience- As trial counsel, you need to be sure that both the ability and personality of your expert fits your case. An expert must be able to complete the analysis in an aecuraie and professional manner. The expen must be able to communicate his accurate opinions to you, your client, and the court in a persuasive and professional manner. Bc

ollow the trail of the physical evidence. Many times, the physical evidence will yield early identification of the issues. This identification allows for an evaluation

uman Element (the driver) is one of the three components in every collision. This categor)' includes driver actions, laiigue. impairment, distraction, training, and qualifications. These disciplines are

Busted I continued from p. 42

in 20ffi, was taken into custody during a traffic stop. She was a passenger in a vehicle being driven by another police officer, Randy Dorsey, who had also been charged in setting an SUV on fire. Authorities said the two police officers are dating. According to authorities, ttie couple had been shopping for an Escalade, signing a contract for one and, after the arson, picking it up. Dofsey was chargeti with second-degree arson and first-degree malicious burning, which are felonies. He is free on $30,000 baii, Anderson was charged with the same crimes, as well as fraud and conspiracy.
Source; The Coalition Against Insurance Fraud

Totaleil Recall
Thirty-three individuals were arrested for allegedly being involved in more than a dozen staged accidents and fraudulently billing 11 atrto insurance companies nearly $1 million for treatment of non-existing injuries and auto damage claims, according to a release by Tom Gallagher, Florida's chief financial officer According to the release, in the case dubbed Totaled Recall, sus-

pects purchased previously damaged used vehicles for staged accidents. According to investigators, tow truck drivers would transport the inoperable vehicles to a crash site and then wait for the police to finish their reports so they could tow the same vehicles away. Several body shops allegedly caused additional damage to vehicles in order to submit inflated claims. The release reports that the accident organizers collaborated with clinic owners and targeted the personal injury protection (PIP) insurance of drivers, billing each patient's insurance company $10,000. Florida law requires drivers to carrv at least $10,000 in PIP coverage and $10,000 in property damage liability coverage. Gallagher's office reports that the arrests followed a two-year investigation, and that 14 of the suspects face a minimum two-year prison term if convicted.

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DECEMBER2006 ClaimsMagBzine wwuvclaimsmag.com

^.ure Ihat your cxpen cati provide you with siaie-of-the-arl techniques in analysis and presentation if the case and foram warratit such presentation. aws of Physics are applicable to all aspects Lif a collision. Any and all analyses must be grounded to theses fundamental principles. In doing so, the credibility of your theory and of the testimony of the involved parlies or witnesses can be evaluated. Be sure that your expert is well-versed in physics and has the ability to explain the concepts in a clear and understandable manner to the layperson.

uestion your expert. Question your theory. Your job and the job of the expen is to evaluate all aspects of ihe collision so that you are cognizant not only of your case, but also of the strengths and weaknesses of the opposing expert and counsel. Do not underesUmate the need and usefulness of this. oadway issues are one of the three components found in every collision. This category includes roadway design elements such as roadway geometry (curves, grades, and super-elevation), traffic controls (signs, striping, signals, and appurtenances),

will have convincing a juror or coun of the value and veracity of the analysis. ehicle issues are another of the three components in every collision. Vehicle issues include mechanical perfonnance, crash worthiness, occupant restraints (seat belts, air bags, and seatbacks), fire cause and origin, onboard computers, and overall vehicle maintenance. These issues typically are handled by the reconstmction engineer or automotive engineer.

ake sure your cxpen has siate-of-ihean lechnology and research available Io him. This not only allows for a more complete and accurate foundation of data, but It potentially leads lo a more-detailed analysis along wlih more possibilities for demonstrative evidence. The utilization of staie-of'the-an technology during the analysis often lowers the cost of demonstrative evidence, too, since the exhibits already have been created as pan of the analysis process. ice pictures can be impressive.. .but are they accurate? Be sure that your v'isual evidence is accurate and unimpeachable. Conversely, be sure thai your opponents demonstrative evidence is substantive and not just "fluff." A collision reconstruction is an engineering process: the same precision utilized for the analysis must be employed in preseniing it. pen-minded appraisal of the available data is necessary to fairly evaluate a case. If you have an understanding of the strengths and weaknesses of your case, it will be easier for you to see how a jury may view your case. Do not allow yourself or your expen lo reach any opinions until the data is properly evaluated. roject how you are going to present your case. The order of your witnesses may allow you lo systematically and smoothly build the loundation of data that your expert will rely upon to render his opinion. It aLsn will allow you to portray to ihe ctiurt ihe reasonable approach utilized to reach your conclusions and opinions.

To be credible, tbe testimony must be consistent not only witb the available physical evidence, but also with tbe laws of pbysics.
pavement properties, construction, maintenance, and work zones. These areas typically are handled by the traffic or highway safety engineer.

ait, if possible, before taking deposidons and finishing discovery until you talk to your expert. He may enlighten you to additional data that can be obtained through dia^overy (induding testimony) that would prove beneficial in the reconstruction analysis. amine the procedure employed by your expert. Be sure that you understand the scope of the expert analysis, what data will be required to complete the analysis, the process the expen plans to utilize to complete the anaiysis. and the general cost of the expend work. The more you are cognizant of the variables required for the expert analysis, the better your chances of not being surprised by the results or the bill. ou are the general contractor. The expen is a sub-contractor. You must know and understand what your expert has accomplished and how his opinions conform to your theory and the opinions of other experts involved in your case. Your case is only as strong as its weakest link. ero tolerance must be ^ven to any variable that is known to be unethical or inaccurate. The evaluation of the available data and applicable theories must be completed with the highest regard br pn:cisi()n. The attorney and expert should have zero tolerance for criteria that does not meet the highest moral, ethical, and scientific standarcis. Steven M. Schorr, PE, President of D JS Associates, Inc., is a nationally renowned expert in the areas of Accident Investigation and Reconstrtjction, Highway Safety and Traffic Engineering. He may be reached at 800-332-6273, experts@forensicDJS.com.
Claims Magazine DECEMBER 2006 45

ecure the vehicle if you have any thoughts that a defect or other type of problem with the vehicle might prove to be an issue. Whenever possible, secure any other item that may be a factor in how the collision occurred. estimony may be an imponant part of your case, but care must be taken to remember that it is not physical evidence. Testimony should be collected utilizing (he three-component thought process as a guide. To be credible, the testimony must be consistent not only with the available physical evidence, but also with the laws of physics. People's views and memories of an occurrence are sometimes fallible: physical evidence does not lie. nderstand your expert. Make sure that the analysis is clear and believable. If you cannot understand or believe your expen. just think of ihe problems that he

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