Press Release  DA and Fraud Bureau Partnership Drives Down Costs

Salem, Massachusetts — For over 16 years, the Essex District Attorney’s Office has maintained an auto insurance fraud priority prosecution unit with the support of the Insurance Fraud Bureau of Massachusetts.  This ongoing partnership has contributed to a $5.7 billion savings to auto insurance ratepayers statewide.

“Under D.A. Blodgett’s leadership, a multi-agency task force was created to combat the widespread insurance fraud in Lawrence in 2003,” said Daniel Johnston, Director of the Insurance Fraud Bureau.  “That unprecedented effort has served as an effective model that has been used throughout the state and has resulted multi-billion dollar savings for the rate payers of the Commonwealth.”

According to the Insurance Fraud Bureau of Massachusetts, the number of personal injury claims in Lawrence fell precipitously after the formation of the task force in 2003 and has remained stable since.   Similarly, in Lynn, personal injury claims were cut in half from nearly 70 in 2003 to 35 per 100 in 2018.  “Importantly, the reduction has remained consistent for the last 15 years due to DA Blodgett’s vigilance and commitment,” Johnston said.

Since 2010, the Essex District Attorney’s Office has arraigned an average 33 defendants a year on charges related to auto insurance fraud. 

“After a 65-year old woman was tragically killed in a staged accident in September 2003, it was apparent that more had to be done to stop this dangerous activity,” DA Blodgett said.  “I have appreciated the support of the Insurance Fraud Bureau, which has enabled my office to maintain an insurance fraud unit.  While the savings to ratepayers is outstanding, ultimately, this is a matter of public safety.”

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