LaPlace man linked to large-scale fake-crash ring

Published 12:05 am Wednesday, August 12, 2015

NEW ORLEANS — A LaPlace man has been linked with 10 others in a suspected staged-crash criminal conspiracy in which fake wrecks were orchestrated to scam insurance companies out of hundreds of thousands of dollars, authorities said.

Denel Osburn

Denel Osburn

Louisiana State Police Troop B announced a nearly two-year, extensive investigation led to numerous arrests for those suspected of involvement in the insurance fraud.

Denel Osburn, 41, of LaPlace is charged with insurance fraud and conspiracy to commit insurance fraud.

Trooper Evan Harrell said Osburn was arrested after investigators indicated he claimed false medical injuries while a passenger in a staged crash June 12, 2013, in the ninth ward of New Orleans.

In the same year the Louisiana State Police Insurance Fraud/Auto Theft Unit received information from a local insurance company relative to a suspected “staged crash ring” taking place over a period of approximately four years in the New Orleans metropolitan area.

The compiled information indicated approximately 16 individuals participated in several staged crashes dating from 2011 to as recent as May 2015.

State Police began to work closely with the Orleans Parish District Attorney’s Office on the cases, Harrell said.

A grand jury investigation was started last month to investigate the various roles and connections between the involved participants, which led to indictments on 11 suspects, including Osburn.

“Through the investigation, it was learned 43-year-old Chad Lightfoot of Morgan City frequently used a false identity and orchestrated four known staged crashes in Orleans Parish,” Harrell said. “Of the four discovered staged crashes, Lightfoot was confirmed to be involved in committing insurance fraud and conspiring to commit insurance fraud.”

The results of the investigation were presented to an Orleans Parish grand jury July 30. The grand jury returned indictments on 11 individuals. Lightfoot was also indicted on multiple counts of perjury related to his civil trial involving the first 2011 staged crash, as well as one count of identity theft.

Insurance agency representatives estimated the total amount fraudulently paid to be over $154,000 related to a staged crash in 2011, Harrell said. Additional staged crash insurance claims were denied once the connection between the parties was discovered and the fraud was detected.

Harrell said the public plays an integral role in identifying suspects accused of these crimes, and community members are urged to report criminal or suspicious activity. To contact the Louisiana State Police Insurance Fraud and Auto Theft Unit visit lsp.org/ifu.html.