NYSID Announces 100-Count Auto Fraud Indictment

March 10, 2004

New York’s Superintendent of Insurance Gregory V. Serio and Attorney General Eliot Spitzer aren’t resting on last year’s achievements in fighting fraud (See IJ Website Mar.9).

Yesterday they announced the filing of a 100-count indictment charging 11 people and seven corporations for engaging in a far-reaching scheme to defraud insurance carriers of an estimated $1 million. Those charged with orchestrating and participating in the scheme include health care providers, attorneys and a network of recruiters.

New York’s no-fault law allows reimbursement to medical facilities for services provided to persons injured in motor vehicle accidents. The NYSID’s bulletin said the defendants manipulated the state’s system “by soliciting motor vehicle accident victims to attend Queens-based IK Medical P.C., and submitted fraudulent no-fault claims for treatment that had not been provided and for medical procedures that were unwarranted. Among the charges the defendants face are scheme to defraud, money laundering, grand larceny, insurance fraud, and falsifying business records.”

“Those involved in this no-fault ring attempted to defraud the no-fault insurance system of over $1 million,” Serio stated. “This is money stolen from the insurance system and from honest auto insurance consumers. It’s through the continued efforts of the New York State Auto Fraud Unit, that the Insurance Department, working with the Attorney General’s Office, is combating insurance fraud and taking these offenders off the street.”

“These defendants ran a sophisticated scheme designed to game the no-fault insurance system through fraudulent billing and laundering of insurance proceeds,” Spitzer commented. “We will continue to aggressively prosecute and dismantle these corrupt organizations.”

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