Louisiana Attorneys Convicted in Major Insurance Fraud Scheme
Two attorneys in Louisiana have been convicted for their roles in a large-scale fraudulent collision scheme, as confirmed by the Department of Justice. Vanessa Motta and Jason F. Giles, along with their law firms, Motta Law LLC and The King Firm LLC, faced conviction after a three-week trial. The charges include mail and wire fraud, obstruction of justice, and witness tampering. Diamanike F. Stalbert, another participant, was convicted of providing false statements to federal agents.
Court documents revealed the scheme, initiated in December 2011 and continuing until December 2024, targeted insurance companies and commercial trucking entities using engineered collisions. The attorneys recruited participants through "slammers" who organized fake accidents, focusing on heavy commercial vehicles with substantial insurance coverage. These incidents were subsequently litigated to secure significant insurance settlements.
The operation involved "spotters" who helped evade detection and "recruiters" like Stalbert to bring new participants into the scheme. The involved attorneys attempted to obstruct justice, notably through witness manipulation and financial inducements. First Assistant U.S. Attorney Michael M. Simpson emphasized the investigation's scope, illustrating how the defendants exploited the legal system for personal gain.
Sentencing for Motta and her law firm is scheduled for July 7, Giles and The King Firm for July 14, and Stalbert for July 21. Convictions such as mail fraud, conspiracy, and witness tampering can lead to up to 20 years of imprisonment, including financial penalties and additional supervised release. Obstruction of justice and making false statements may result in up to 10 and 5 years in prison, respectively, alongside fines and supervised release.
This case is part of a broader investigation in the New Orleans area, with 63 individuals charged for related crimes. In a separate case, a driver in Oklahoma was apprehended with over 20 pounds of methamphetamine in his tractor-trailer. Jose Carlos Morales-Gutierrez, lacking a valid driver's license, was charged with possession with intent to distribute, facing potential life imprisonment and hefty fines if convicted.
Additionally, an annual commercial vehicle safety operation, Operation Full House, is scheduled for March 25-26 at the I-10 Ehrenberg Port of Entry. Conducted by the Arizona Commercial Vehicle Safety Partnership, this initiative will focus on improving compliance with motor carrier safety regulations, deploying over 50 inspectors to ensure adherence to state laws and regulations.