Waterloo Regional Police say men from Kitchener and Cambridge were arrested earlier this month in connection with a staged crash investigation.
Police say the collision was reported on Blenheim Road in Cambridge on June 18.
They say the suspects called police to report the head-on collision while also submitting claims for damaged vehicles and benefits.
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Police officers teamed with the insurance companies involved to determine that the crash was staged.
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The insurance companies were allegedly bilked of more than $49,000 as a result of the staged crash.
A 55-year-old Cambridge man and a 39-year-old Kitchener man are facing charges of fraud over $5,000 and public mischief.
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