“Stop Auto Fraud Act of 2026
Sponsors: Gillen (D-Rockville Centre), Rep. Josh Gottheimer, a New Jersey Democrat; Rep. Troy Nehls, a Texas Republican; and Vince Fong, a California Republican
The bill would make staged-crash insurance fraud a distinct federal felony, rather than relying solely on existing general fraud statutes or state insurance-fraud laws. Importantly, it reaches both completed and attempted schemes and expressly encompasses the medical and wage-loss claims that can accompany staged crashes.
For an auto-insurance reform context, the most significant feature is that the legislation targets the staging of the collision itself plus the resulting fraudulent insurance claim, with escalating federal penalties when innocent motorists are seriously injured or killed.
Runner Legislation
Current Legislation A.7392 (Pretlow) /S.4874 (FAHY)
This bill creates the crime of unlawful procurement of clients in three degrees. Criminalizes acting as a "runner" or soliciting or employing a "runner" to procure patients or clients.
This legislation is modeled after New Jersey laws and federal anti-kickback statutes, aiming to combat insurance fraud in New York. It targets the practice of using "runners"—individuals paid to recruit patients for fraudulent medical providers who bill no-fault insurance for unnecessary or fake treatments. The bill seeks to reduce fraud by criminalizing both runners and the providers who use them, with penalties ranging from a class A misdemeanor to a class D felony, depending on the financial impact or frequency of offenses.
