In short
- Keating admitted paying for thirty-one illegally staged tractor-trailer accidents and settled seventeen of them, keeping approximately $358,000.00 in attorney’s fees.
- Sixty-three defendants have been charged in the federal probe into staged collisions in New Orleans.
What happened
Danny Patrick Keating, Jr., a New Orleans personal injury attorney, was sentenced to thirty-two months imprisonment, three years supervised release, and ordered to pay $657,405.34 in restitution for his role in a conspiracy involving staged automobile accidents with tractor-trailers. He was indicted in 2020 and pleaded guilty in 2021 to knowingly paying for thirty-one staged accidents.
Keating represented seventy-seven plaintiffs in these staged accidents, settled seventeen cases, and received approximately $1,500,000.00 in settlement monies, keeping $358,000.00 as attorney’s fees. The lawsuits he filed fraudulently misrepresented accident details and involved false testimony, with sixty-three defendants charged in the ongoing federal probe.
KEATING admitted filing lawsuits in state and federal court in Louisiana, on behalf of his clients who were involved in the staged accidents. The lawsuits he filed on behalf of the seventy-seven (77) plaintiffs fraudulently misrepresented the identity of the driver of these vehicles, fraudulently misrepresented who was at fault in the staged accidents, and fraudulently claimed injuries.
In numbers
- thirty-two (32) months imprisonment sentence for Keating
- $657,405.34 restitution ordered
- sixty-three (63) defendants charged in federal probe
Named in this item
What compliance teams should check
- Review client lists and settlement records for links to the thirty-one staged tractor-trailer accidents involving Damian Labeaud.
- Screen for fraudulent misrepresentation in lawsuits filed on behalf of seventy-seven plaintiffs in New Orleans staged accident cases.
- Monitor for connections to the sixty-three defendants charged in the federal probe into staged collisions.
Why it matters
This case highlights the risks of fraud schemes involving staged accidents and fraudulent legal claims, which can result in significant financial losses and legal exposure for financial institutions and insurers. Compliance officers must be vigilant in identifying suspicious settlement patterns, misrepresented accident details, and connections to known fraud probes. The ongoing federal investigation and the creation of the National Fraud Enforcement Division signal increased scrutiny and enforcement, making robust AML/CFT controls essential to detect and report such activities.
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