On March 8 New York Superintendent of Insurance Gregory V. Serio and Bronx District Attorney Robert T. Johnson announced the arrests of eight people, including health care providers at two Bronx clinics, in connection with a scam to defraud automobile insurance companies. The arrests are the result of a continuing undercover investigation and sting operation that has been in progress since July 2000.
The insurance department and the DA’s office allege that the defendants attempted to steal more than $42,000 from insurance companies by submitting invoices for medical treatment and procedures that were never performed. One of the defendants, an executive with a car service company, is accused of falsely claiming to have transported accident victims from their homes to one of the clinics for treatment.
The defendants face charges of insurance fraud, falsifying business records, attempted grand larceny and attempted petit larceny. The most serious offense, insurance fraud in the 3rd degree, is a class “D” felony punishable by up to seven years imprisonment on each count. The insurance department indicated that at least one other arrest is expected and that additional charges may be filed.
Topics Fraud
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