A man who spent years acting as a supposed advocate for injuredmotorists may have taken his duties too far.

|

By his own admission, 65-year-old Joseph Haddad persuadedaccident victims to not only fabricate injuries but also seekpowerful prescription pain killers and unnecessary, often prolongedmedical treatment. Although some cases may haveat first been legitimate—when Haddad met with clients inhis law offices in Trumbull and Bridgeport, Conn.—an alarmingnumber of them would serve as a vehicle bywhich Haddad could command a cut of ill-gotten insuranceproceeds.

|

As investigators would learn, Haddad did not act alone. Rather,he was in cahoots with at least six other professionals, includingan area doctor and four chiropractors, who admittedlysuccumbed to the temptation of “easy money.”

|

An FBI investigation dubbed “Operation Running Man” ultimatelyrevealed the extent of Haddad’s involvement in filing fraudulentpersonal injury claims to multiple insurance carriers. FBI SpecialAgent Daniel Curtin coordinated the probe, sending an undercoveragent to Haddad for consult. The agent claimed told Haddad he hadbeen injured in a car accident. At one point, Haddad advised theagent to request stronger medication “even if [he] wouldn’t takeit” and to also seek 6 months of treatment (at minimum) fromdesignated chiropractors. According to court documents, Haddadexplained the timeframe was necessary “because that way, [he has] agood quality case, and they can't say [the injured client] didn'ttreat long enough."

|

Documents filed in federal court further allege that Haddad paidcash to individuals to scrounge up clients involved in motorvehicle accidents. Often those runners would review and obtainaccident records from local police departments, particularlyBridgeport. After meeting with clients, Haddad recommended theyvisit Francisco Carbone, a former doctor with a prior federalhealth fraud conviction and whose license was pulled by the state.Carbone then completed injury reports and provided permanentdisability ratings, often without physically examining clients.

|

Authorities say that Haddad occasionally would send clients withinstructions to Dr. James Marshall, who operated Immediate MedicalCare in Monroe, Conn. (Marshall would later plead guilty to chargesrelated to filing fraudulent medical claims). Next, Marshall wouldwrite prescriptions for narcotic pain killers, and similar toCarbone, would often do so without actually examining thepatient.

|

Those fees associated with unnecessary diagnostic testscertainly add up. For example, chiropractors who sent a patient fora nerve conductivity test provided by Kirschner's Midas Medical(another business implicated in the FBI probe) would typicallyreceive a kickback on the $2,000 bill, according to the FBI.

|

Haddad negotiated a plea agreement with prosecutors and is theseventh person to plead guilty as a result of Operation RunningMan. The others who copped to their crimes are Dr. James Marshalland Francisco Carbone, along with four chiropractors: MarcKirshner, who owned and operated clinics in Bridgeport and Stamfordas well as Midas Medical, LLC, a diagnostic testing company; GeorgeDeCarvalho; Jennifer Lynne; and Jennifer Netter. All are currentlyawaiting sentencing.

|

In late December, Haddad appeared before U.S. District JudgeStefan R. Underhill and admitted guilt to charges of conspiring tocommit mail fraud and mail fraud, both of which carry maximum20-year terms. However, he agreed not to appeal any sentence of 63months or less imposed by Underhill on March 28. That agreement ispart of a plea-bargain deal coordinated by Assistant U.S.Attorneys Christopher Schmeisser and David Sheldon and Haddad’slawyer, John R. Williams.

|

Additionally, Haddad agreed to pay $1,758,368 in restitution tothe various insurers he helped defraud. Theseinclude Nationwide, Travelers, Progressive, Metropolitan andEsurance.

Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.