Fraud Rings Bilk Insurance Companies - and You - of Billions

Florida investigators target complex racket involving medical clinic, fake patients.
5:46 | 10/24/13

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Transcript for Fraud Rings Bilk Insurance Companies - and You - of Billions
Believe it or not this fender Bender. He -- 80000 dollar car crash. -- billion dollar problem. Commencing here from undercover video had stage this accident. -- insurance fraud that no one got hurt that could be lots of victims like possibly -- He's a surveillance photographs. That -- house. It's. It's 5:30 in the morning -- -- indoors in the dark guys are ready. Agents and police officers stage at various points around Miami. -- mean being part where it hate that expensive insurance. Today's mission. To sweep up and arrest some twenty people suspected of being involved in -- personal injury insurance fraud ring. Among them to medical clinic owners the cops tell us it may not be glamorous but it is there lucrative. How much money someone like this suspected -- -- They're big Oscar millions. This -- brought it really isn't it. For nine months agents from Florida's department of finance specializing. In insurance fraud had been unraveling what they believe. Is a complex -- insurance fraud. Prosecutors -- medical clinic owners physicians therapists. -- village accident victims of organized -- accidents to rake in money from insurance payments. We like it catches people. While -- home. Why they've got the guards down and -- sometime Reuters goes back. It's estimated personal injury fraud. Cost the state of Florida alone for a million dollars a year -- -- passed down to you the consumer. In the form of higher and higher insurance premiums. How does it work as he met undercover video shot by a detective. Previously prosecuted case it starts with a faked accident. That's only could -- Police say it's perfectly orchestrated -- the cars are now putting position on the streets. The Sokol passengers arrive on the scene and finally a call goes out to the police. Yeah I'm one northwest's. One through five through. The next day -- pant -- later -- the passengers -- really injured all total personal injury clinic allegedly set up by the fraud served their -- There's -- employees file up to 101000 dollars per person in insurance claims for massage therapy or other treatments. That are never for fort. One car passengers can generate 40000 dollars to -- 80000 bucks for just one minor and fake collision. Tomorrow will looking to do this at 6 o'clock in the morning the day before the arrests go down. Lieutenant -- failed Delgado reached the team on the case dubbed operation on the no maid services would look at these people -- the operation targets what police say is a soup to nuts fraud operation. For clinics to owners very simple lawyers who allegedly organized the staged accidents. And people accused of participating as paid passengers. Delgado tells -- the five car accidents these suspects were allegedly involved in cost insurance companies more than 4000. Dollars. -- from here to there there in the Delgado and detective Oscar Sigler taken on a tour of where one accident took place so this is where the magic captain street corners like bears and kind of residential areas. -- That's correct pretty quite -- -- -- season but the action is really only the first debt they need the clinic they need to -- without lit -- the clinics. This is all useless. We went to try to find the magic hands were the -- clinics targeted in the operation. An independent city his -- Billing for services not rendered. -- -- -- signed paperwork never come back services. We walk by nondescript office doors. -- -- After months and months following paper trails tracking down suspects. Conducting surveillance photo -- the other teams are finally any out in the predawn darkness to cast their quarry -- nervous. Not not -- dozens wanna get this done at 6 AM the evening news. Room. And say your physician's assistant. Also say -- even filing false insurance claims they often coup on false insurance claims. The surprise. You have. We don't know -- -- And within the hour yeah. Nearly twenty suspects have been taken into custody and are on their way back to headquarters. And question. Within days they are all rains and according to defense attorneys and court documents they have all entered not guilty pleas. This crew may or may not be guilty but our agents jealous personal injury insurance fraud scans show no signs of slowing down. For Nightline that got him. In Miami.

This transcript has been automatically generated and may not be 100% accurate.

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