N.Y. Department, A.G. Report 100-Count Auto Fraud Indictment

New York Superintendent of Insurance Gregory Serio and Attorney General Eliot Spitzer announced the filing this week of a 100-count indictment charging 11 people and seven corporations for reportedly engaging in a far-reaching scheme to defraud insurance carriers of an estimated $1 million. Those charged in this orchestrated scheme include health care providers, attorneys and a network of recruiters.

“Those involved in this no-fault ring attempted to defraud the no-fault insurance system of over $1 million,” Serio said. “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 said. “We will continue to aggressively prosecute and dismantle these corrupt organizations.”

New York’s no-fault law allows reimbursement to medical facilities for services provided to persons injured in motor vehicle accidents. The defendants manipulated New York’s no-fault 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.