$3M Auto Insurance Fraud Scheme in Texas Leads to Prison Time

September 17, 2014

Two Bryan, Texas, men have been sentenced for their roles in a scheme that authorities say defrauded insurance companies of more than $3 million.

Earlie Dickerson, a former office manager, was sentenced in Houston federal court to 14 years in prison for recruiting individuals involved in auto accidents. According to U.S. Attorney Kenneth Magidson, Dickerson worked out of the Bryan office of Houston-based Sanjoh & Associates.

Federal prosecutors say Dickerson sent individuals he recruited to specific chiropractic clinics, where they received medically unnecessary therapeutic treatments.

Authorities say Dickerson used fraudulent bills from the treatments to obtain settlement checks from auto insurance companies. He was convicted by a Houston federal jury in October 2013 after only four hours of deliberation.

Another individual convicted in the scheme, Marion Young, was sentenced to five years in prison.

The scheme resulted in the submission of more than $3 million in false billing claims on which the companies paid out at least $1.2 million during 2007-2009, the U.S. Attorney’s Office reported

Both Young and Dickerson were ordered to pay restitution to the auto insurance companies of approximately $1.2 million.

Chiropractor Edward Graham, 38, was also convicted at trial with Dickerson and will be sentenced Oct. 14, 2014. Two others – Chase Lindsey, 46, a chiropractor, and Brittany Jessie, 24, pleaded guilty in advance of trial and were sentenced previously to 24 and 30 months in federal prison, respectively.

All of the defendants are Bryan residents.

Federal authorities say chiropractic clinics involved in the scheme included Texas Avenue Chiropractic Clinic, Private Chiropractic Care, H&E Chiropractic and Lindsey Chiropractic Care.

The criminal charges are the result of a joint investigation by agents of the FBI and the National Insurance Crime Bureau. Assistant U.S. Attorneys Al Balboni and Adrienne Frazior prosecuted the case.

Source: Associated Press, U.S. Attorney’s Office for the Southern District of Texas

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