A Bryan, Texas, chiropractor has entered a plea of guilty to engaging in a conspiracy to defraud various automobile insurance companies of more than $3 million, according to United States Attorney Kenneth Magidson.
Chase Lindsey, 34, is the co-owner of Lindsey Chiropractic Care located in Bryan. The U.S. Attorney’s Office reported that Lindsey admitted he participated in a two-year conspiracy to defraud numerous auto insurance companies by allowing fraudulent chiropractic bills to be created under his name for treatments that were never performed and used as support for fraudulent settlement demand letters sent to auto insurance companies.
Lindsey entered into an agreement with the office manager of a law firm which represented clients allegedly injured in auto accidents. Lindsey agreed to provide medical evaluations of, and recommend treatment for, those patients in exchange for $2,000 in cash per month, which totaled approximately $58,000 during the course of the conspiracy.
For the clients he actually evaluated, Lindsey routinely recommended medically unnecessary therapeutic treatments, according to Magidson’s announcement.
Lindsey and others used four chiropractic clinics in the scheme. Lindsey started working at the first clinic, Texas Avenue Chiropractic Clinic, in February 2007 and continued until it closed on or about Sept. 1, 2007. After that, Lindsey was listed as the only chiropractor at H & E Chiropractic and Private Chiropractic Care, two businesses also involved in the conspiracy. After Private Chiropractic Care shut down in September 2009, Lindsey and others agreed to continue the fraud scheme by sending the law firm clients to Lindsey Chiropractic Care – Lindsey’s chiropractic clinic. Clients were sent there until search warrants were executed in November 2009.
Co-conspirators recruited individuals allegedly involved in auto accidents to be represented by the law firm who were then sent to Lindsey to be evaluated.
The fraudulent bills were used as support for settlement demand letters sent to auto insurance companies which caused the insurance companies to issue settlement checks. Lindsey acknowledged the scheme to defraud the automobile insurance companies resulted in the submission of more than $3 million in false billing claims. The insurance companies paid at least $1.2 million in false claims during 2007-2009.
U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, set sentencing for April 22, 2013. At that time, Lindsey faces up to 30 years in prison and a possible $1 million fine. As part of his plea agreement, Lindsey also agreed to pay restitution of $1.2 million to the insurance companies victimized by the scheme. Lindsey was permitted to remain on bond pending his sentencing.
The remaining defendants charged in relation to the conspiracy are set for trial on April 2, 2013.
The criminal charges are the result of a joint investigation by agents of the FBI and the National Insurance Crime Bureau. Assistant United States Attorney Al Balboni is prosecuting the case.