Protecting American Consumers Together (PACT) has announced that the U.S. State Department has reinforced its terrorist designation of the gang MS-13. This decision is based on the gang's involvement in staged accidents and insurance fraud schemes, which are reportedly conducted in collaboration with Russian criminal groups. The announcement was made in a press release dated February 20.
The press release states, "While MS-13’s criminal activities are broad and violent, the gang’s shift toward financially motivated crimes like abusing the personal injury legal system demonstrates a disturbing trend in their operations. With the State Department Foreign Terrorist Designation, law enforcement will now have more teeth to combat MS-13 and their wide range of illegal activities, including widespread insurance fraud schemes that exploit consumers and drive up costs for every American."
According to PACT, MS-13 has been recruiting migrants to fake injuries in staged accidents, partnering with Russian-led criminal operations to execute these insurance fraud schemes. These scams involve phony falls, corrupt doctors performing unnecessary surgeries, and lawsuits seeking million-dollar settlements. Law firms, lending companies, and organized recruiters further exacerbate this issue within the insurance and legal industries.
MS-13 was originally founded in Los Angeles but has since expanded across Central and North America. The gang actively recruits members and spreads violence in countries such as El Salvador, Honduras, Guatemala, Mexico, and the United States. The U.S. Department of State reports that MS-13 has carried out assassinations and attacks using improvised explosive devices (IEDs) and drones against government officials and facilities in El Salvador. Additionally, the gang employs public violence to intimidate civilians, control territory, and manipulate elections within El Salvador.
The New York Post highlights that fraudulent injury claims under New York’s Scaffold Law are contributing to inflated auto insurance premiums in the state, which already ranks third highest nationwide. Construction consultant Rygo Foss warned about this issue by stating: "We have 59 cases that we’ve identified as fraudulent… Everyone’s getting hit," estimating $100 million in settlements. Convicted scam organizer Peter Kalkanis admitted: "It was always a back injury… if someone balked at having fusion, the case would be dropped."
PACT is a 501(c)(4) advocacy group dedicated to ensuring plaintiffs, victims, and consumers have access to a fair and transparent legal system. The organization fights against exploitative personal injury practices while promoting consumer protection policies.
