N.Y. Doc Acquitted of Participating in $275M No-Fault Insurance Scheme

November 21, 2013

A Long Island, N.Y., doctor has been acquitted of participating in a $275 million scheme to defraud no-fault auto insurers.

Joseph Vitoulis had been accused of acting as the straw owner of a medical clinic. He allegedly ordered phony treatments and kicked back money.

Newsday says it learned of the Nov. 4 acquittal from Vitoulis’ lawyer.

It says the Manhattan U.S. attorney’s office had no comment.

Prosecutors announced the alleged scheme in 2012. It allegedly involved paying accident victims to agree to excessive treatments and then skimming money from clinics secretly controlled by the conspirators. It allegedly was centered in Brooklyn’s Brighton Beach section.

Twenty-five defendants have pleaded guilty in the case. Two have been acquitted on all counts and 13 cases are pending.

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