Liberty Mutual Suit Accuses New Jersey Chiropractor of Intricate Fraud Scheme

November 16, 2000

Liberty Mutual Insurance Co. served summons and complaints this week against Scott Greenberg, D.C., a New Jersey chiropractor whom the company claims defrauded personal injury protection benefits through an intricate network of illegal patient referrals. Also named in the suit are defendants Pace Chiropractic Associates, Inc., Easton Chiropractic Associates, Inc., Apex Chiropractic Associates, P.A., Access Chiropractic Associates, P.A., Chambersburg Chiropractic Associates, P.C., Middlesex Diagnostic, and Accurate Billing Company, Inc., all New Jersey facilities owned by Dr. Greenberg; and 100 “John Doe” individuals.

The lawsuit, filed Nov. 13 in the Superior Court of New Jersey, Morris County, contains five counts against Dr. Greenberg, accusing him of engaging in a conspiracy of self-referral in violation of New Jersey law. In an effort to disguise his illegal referral practices, and mislead the public, the suit alleges Greenberg created a series of corporate entities, including the aforementioned chiropractic offices, billing companies, and illegally owned and structured diagnostic testing facilities. According to one of the suit’s counts, Dr. Greenberg created Accurate Billing Company, Inc., through which he entered into service agreements to be the exclusive billing and collection agent for diagnostic testing facilities, including Neuro Muscular Medical Group, P.A.(1)

Under the service contract, Dr. Greenberg retained 30 percent of Neuro Muscular’s monthly receipts, with monies billed to and collected from Liberty Mutual diverted back to Dr. Greenberg. The suit also alleges that Dr. Greenberg further conspired to submit fraudulent claims for PIP benefits by referring patients from his chiropractic offices to his Middlesex Diagnostic entity. In each instance, Dr. Greenberg allegedly violated New Jersey law by referring patients to provider facilities in which he owns or maintains a significant financial interest.

Liberty Mutual seeks repayment of all prior PIP benefits paid to Dr. Greenberg and his defendant practices, and a punitive award tripling that amount, plus reimbursement of all of its costs and attorneys’ fees for this lawsuit under the New Jersey Insurance Fraud Prevention Act.

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