Wednesday, February 29, 2012

Dozens Charged in Massive Insurance Fraud Scheme in New York.

Federal and local authorities in New York unveiled charges today against 36 defendants — including 10 doctors and three attorneys — allegedly involved in a systematic scheme to defraud auto insurance companies of more than $275 million under New York’s no-fault insurance law.
According to the indictment, the scheme involved creating fraudulent medical clinics to defraud insurance companies under the state’s no-fault law. The charges include conspiracies to commit racketeering, healthcare fraud and money laundering dating back to around 2007.
The majority of defendants were arrested on Wednesday morning, according to news reports.
(Insurance Journal News February 29, 2012)

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