The "fraud" cases generally involve vehicles of later years than the one involved, so I doubt it.
Vijay008: sorry about the accident, but I am glad no injuries resulted. Still, that is probably not much consolation for you.
The bad news is, your car is totaled. My mom got into an accident back in 1979 with the 1971 280SE, in which she was clipped at the front by a kid who ran a stop sign. Total damage: $11,500!! Considering the cost of repair back then, you are probably in that range, if not higher.
The good news is, W124s are plentiful. Take the cash that the insurance company gives you, and shop for another one. You might even find a creampuff that was cared for even better than the one you lost!
2009 ML350 (84K) - Family vehicle
2001 CLK430 Cabriolet (71K) - Wife's car
2005 BMW 645CI (124K) - My daily driver
2012 Mustang V6 (60K) - Daughter's car