Consumer advocacy group Protecting American Consumers Together (PACT) has issued a warning regarding the growing involvement of the gang MS-13 in organized insurance fraud and legal system abuse. This warning follows the U.S. State Department's designation of MS-13 as a terrorist organization. PACT highlighted that the gang employs staged accidents and fraudulent lawsuits as part of their expanding illegal operations, according to a press release issued on February 20.
The State Department officially designated eight transnational criminal organizations, including MS-13 and the Sinaloa Cartel, as Foreign Terrorist Organizations (FTOs) and Specially Designated Global Terrorists (SDGTs) on February 20. "The intent of designating these cartels and transnational organizations as terrorists is to protect our nation, the American people, and our hemisphere," said Secretary of State Marco Rubio. He emphasized that these designations provide expanded law enforcement tools.
According to PACT, while this designation highlights the gang’s extensive criminal operations, it is important to recognize that gangs like MS-13 have been linked to a wide range of illicit activities. These include exploiting the legal system with a rise in staged car accidents used for insurance fraud. The statement from PACT indicated that "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's Foreign Terrorist Designation, law enforcement will now have more resources to combat MS-13's illegal activities.
The New York Post reported that MS-13 has been recruiting migrants to fake injuries in staged accidents, partnering with Russian-led criminal operations for 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 fuel this racket.
According to PACT, MS-13 is collaborating with Russian-led criminal networks specializing in white-collar fraud, forming what a former NYPD supervisor described as "a perfect marriage for them." This collaboration between violent street gangs and sophisticated fraud operations presents an increasing challenge for both the insurance industry and law enforcement.
Protecting American Consumers Together (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 and promotes consumer protection policies.
