Eight Floyd County Residents Charged with Staged Automobile Collision

PIKEVILLE, KY—A federal Indictment was filed Wednesday involving eight Floyd County residents for allegedly arranging a staged automobile collision in order to collect insurance payments.

A grand jury in London has charged Junior Little, Luther Johnson, Jr., Robin D. Shumaker, Dannie Lee Bentley, Green Berry Newman, Troy L. Fields, Burnett Little, and James Clarence Hall with one count of conspiracy. Green Berry Newman, Junior Little, Dannie Lee Bentley, Troy L. Fields, and Robin D. Shumaker were also charged with additional counts of mail fraud for allegedly using the postal service to deliver mail for the purpose of furthering their scheme and artifice to defraud and for obtaining money and property by false and fraudulent pretenses, representations, and promises.

The alleged conspirators agreed to intentionally cause damage to insured automobiles owned or operated by other conspirators so that they could file such claims and subsequently make false statements to law enforcement, insurance companies and medical personnel regarding the circumstances surrounding the accidents and their injuries. Further, they agreed to share the money with other conspirators not making claims.

The investigation preceding the Indictment was conducted by the Federal Bureau of Investigation, Kentucky Department of Insurance - Fraud Division, and National Insurance Crime Bureau.

Each count carries a maximum sentence of up to 20 years’ imprisonment, a $250,000 fine and five years of supervised release.

The case is being prosecuted by Christy J. Love with the U.S. Attorney's Office.