Two 24-year-old men have been sentenced after orchestrating a fraud scheme following a car accident with a rental vehicle.
One man received jail time while the other was placed on probation.
Here’s what happened.
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The Accident and Deception
Lu Deqiang and Yang Zhirong (names transliterated from Mandarin), both 24, were involved in a car accident on 15 Nov 2020. Lu had rented a car from OZ Car Rentals and invited Yang for dinner that evening.
After their meal, Lu allowed Yang to drive while he sat in the passenger seat.
While driving along Upper Serangoon Road, Yang failed to notice a car slowing down ahead of him. He swerved left in an emergency maneuver but collided with another vehicle.
Since Yang was not authorized to drive the rental car (usually, rental car can only be driven by the renter), the pair worried about liability and insurance claims. They agreed to lie, with Lu falsely claiming he was the driver at the time of the accident.
Insurance Fraud Attempt and Consequences
The day after the accident, both men contacted the rental company, falsely stating that Lu was driving when the crash occurred. The rental company required Lu to pay an $8,000 rental excess amount.
The two then conspired to deceive an insurance company by claiming Yang was injured while sitting in the passenger seat during the accident. They sought at least $10,260 in medical expenses, planning to use this money to pay the rental company.
To support their fabrication, Yang filed a false police report and hired a lawyer to pursue the insurance claim.
The insurance company launched an investigation after receiving the lawyer’s letter.
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But that was when shit hits the fan.
They discovered dashcam footage showing Yang was actually the driver, exposing the fraud. The insurer advised Lu to confess to the police, which he did. The insurance company filed a police report in January 2022, and Yang received no medical compensation.
Both men faced one charge of fraud and one charge of providing false information to a public servant. They pleaded guilty to the fraud charge, with the second charge taken into consideration during sentencing on 22 Apr 2025.
After assessment, Yang was deemed unsuitable for probation and sentenced to two weeks in jail. Lu received one year of probation with 50 hours of community service and must remain indoors from 11 PM to 6 AM.
His father posted a $5,000 bond to guarantee good behaviour during the probation period.
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