Six Arrested in Calif. Insurance Fraud Scheme, 16 Others Wanted

Eighty-six people have been arrested on suspicion of bilking insurance companies out of more than $500,000, one of California’s largest ever insurance fraud cases, the district attorney’s office said.

The 86 were arrested Thursday, while arrest warrants have been issued for another 16, said District Attorney Steve Cooley.

The indictments allege employees from 12 law offices in the San Gabriel Valley referred clients who had been in auto accidents to chiropractors who overcharged the insurance companies.

Insurance settlements were then distributed by the law offices to the client, law office and chiropractor clinics, authorities said.

Following a tip, an investigation was launched in Sept. 2004, focusing on suspected attorneys and legal office employees who were allegedly selling accident insurance claim cases for referral fees and kickbacks from chiropractic clinics.