NYC Insurance Fraud Ring Sentenced After Viral TikTok Exposes Staged Crashes
Two Brooklyn men will serve prison time for staging car crashes on NYC highways, netting over $80,000 in fraudulent payouts before a viral TikTok video unraveled their scheme.
Brooklyn Duo Staged Belt Parkway Crashes for $80K in Insurance Payouts
Two Brooklyn men are heading to prison after a viral TikTok video led investigators to a staged car crash scheme on New York City highways that generated more than $80,000 in fraudulent insurance payouts, Queens District Attorney Melinda Katz announced Thursday.
Jaime Huiracocha, 53, will serve at least one year in prison. Victor Murillo, 34, received a minimum two-year sentence. Both pleaded guilty to insurance fraud charges, according to NY Post Metro.
The investigation was set in motion when Katz's 15-year-old son showed her a TikTok clip of a Honda Civic reversing deliberately into another vehicle on the Belt Parkway after narrowly avoiding a collision.
"This original video, which happened to have been the third incident, not the first, was really key in us identifying, investigating and making sure we had the right people," Katz told reporters. "We worked backwards from that viral video."
How the Scheme Worked
Prosecutors say Murillo drove the target vehicle and would suddenly brake hard, causing trailing cars to rear-end him. Huiracocha followed in a separate vehicle, coordinating by phone on when and how to execute each staged collision.
After each crash, Murillo switched seats while passengers covered the rear window with plastic bags to conceal his position. He then slipped into a waiting getaway car as co-conspirators feigned injuries — dashcam footage shows them holding the sides of their heads in apparent distress.
The first staged crash took place on Aug. 24, 2024, when Murillo, driving a Honda Civic, cut in front of a 47-year-old woman on the Belt Parkway and braked without warning. That incident yielded $79,000 in personal injury payouts from an insurance company, according to a law enforcement source.
A second crash followed on Oct. 3, 2024, when Murillo caused a tractor-trailer to strike the rear of a Nissan SUV he was driving. The truck driver appeared skeptical from the outset. "Do you think I'm stupid?" he asked in Spanish, according to video from the scene. That incident netted $5,000 in payouts, the source said.
The Viral Video That Broke the Case
The third incident, which took place on the Belt Parkway, was captured on video and spread widely online. It showed Murillo's Honda Civic cutting off a 31-year-old woman's car. When she managed to avoid rear-ending him, Murillo threw the car into reverse and backed directly into her vehicle.
"Oh my God, what is he doing?" the woman exclaimed on video after the impact.
Passengers then covered the rear window with a black plastic bag, briefly shielding Murillo as he climbed out of the Honda and into a red Kia SUV that had pulled up ahead. The remaining occupants staggered out of the car and pointed their phones at the woman's vehicle, feigning injury. An insurance claim was filed and nearly paid out before being withdrawn when the video went viral.
Clinic Meetings and Promised Payouts
Before the final crash, Huiracocha met with the group at a medical clinic in East New York, where he gave instructions on staging the collision, according to prosecutors. Participants were told to photograph the wrecked car and visit a separate clinic in Glendale afterward. Huiracocha promised each participant thousands of dollars for their role in the racket.
Two other participants, Maikel Martinez and Ivon Matus-Martinez, also pleaded guilty and are scheduled to be sentenced next month.
Prosecutors pursued charges including insurance fraud, staging a motor vehicle crash, and reckless endangerment against Huiracocha and Murillo, with the cases formally advanced in 2025.
Broader Context: New York's Staged Crash Problem
Katz announced the sentences alongside Gov. Kathy Hochul, who has pressed for car insurance reforms as part of this year's state budget negotiations.
Hochul's office noted that New Yorkers pay more than $4,000 a year in car insurance — roughly $1,500 above the national average. Cracking down on fraudulent claims was a central element of her reform package.
"The fraudsters have been preying on a flawed system for a long time," Hochul said. "Over the past five years, the state of New York has seen a tripling — a three-digit increase — in fraud-related staged crashes. In 2023, we had 1,700 staged crashes, the second highest in the nation."
Hochul said reduced premiums for New York drivers would not materialize immediately but were forthcoming. She cited one staffer whose premium dropped by $100 as an early sign of progress.
Source: NY Post Metro