Insurers Seek $17 Million from NJ Chiropractors

Allstate New Jersey Insurance Company and Encompass Insurance have filed a multi-million dollar civil complaint, under the New Jersey Insurance Fraud Prevention Act against Scott Greenberg D.C., a Central New Jersey-based chiropractor and Middlesex Diagnostic Associates, a neurological testing company, as well as a medical billing business, Accurate Billing Company Inc. which he allegedly controls.

Other defendants in the suit include Roman Sorin M.D. and Neuro Muscular Medical Group P.A., alleged to be controlled by Sorin, as well as Steven Brownstein M.D. and Brunswick Imaging Corporation, an MRI facility alleged to be controlled by Brownstein.

The companies are seeking recovery of more than $17 million they have paid to the various defendants beginning in 1993. They’re also asking for treble damages, and a declaratory judgment against the medical practitioners “in order to halt all claims being made by Drs. Greenberg, Brownstein and Sorin and the professional entities controlled by them.” That request was included because the companies are still receiving claims from the defendants.

Greenberg allegedly orchestrated a referral scheme to defraud the carriers. Specifically, he’s accused of illegally self-referring his chiropractic patients to Middlesex, a mobile diagnostic facility in which he was the sole owner, which is illegal under N.J. law.

Greenberg is also charged with setting up and controlling Accurate Billing Company, which kept 30 percent of Neuro Muscular Group’s monthly gross income. The lawsuit contends that the deal was a kickback from Sorin to Greenberg in exchange for the patient referrals.

Allstate N.J. President Richard C. Crist Jr. said the company “believes that the fight to rid the system of insurance fraud is a crucial one, and it continues daily. It is especially disturbing when doctors and others in the medical profession have allegedly violated their public trust.”

“People place their faith in medical professionals and they should be protected from those who violate the law.”

Topics Carriers New Jersey