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Updated Mar 19, 2014 - 6:32 am

Texan pleads guilty in $5M staged accidents scam

DALLAS — A Texas man has pleaded guilty to fraud in a $5 million
staged traffic accident scheme since 2005.

Prosecutors in Dallas said 61-year-old Leroy Nelson of DeSoto pleaded guilty to
mail fraud and to engaging in illegal monetary transactions. Nelson faces up to
30 years in prison and could be required to make restitution when he’s sentenced in the summer.

Investigators said drivers made false insurance claims in return for cash
payments. Nelson, who pleaded guilty Tuesday, would also submit damage claims
for elaborate, technical equipment that he made up, such as a “remote aircraft
landing marker.”

Nelson opened private mailboxes in Arizona, Minnesota, Missouri, Washington, Connecticut and Louisiana to get insurance checks, then had the mail forwarded
to him in Texas.


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