N.Y. Lists Worst Insurance Scams Of 2003
NU Online News Service, March 10, 10:08 p.m. EST?The New York State Insurance Department, which made 811 fraud arrests last year, released its annual "Top 10″ list of the worst insurance-fraud cases in the state for 2003.[@@]
New York's insurance department said the list should be a powerful reminder that insurance fraud is far from a victimless crime. The department noted that consumers pay for this crime through higher premiums, cost of goods, and in some cases, injury and even death.
The department list of worst insurance-fraud cases during 2003 include:
? A group of 51 New Yorkers, including one doctor, who were arrested for defrauding insurers of tens of millions of dollars. In this scheme, "runners" recruited people to pose as auto-accident victims, who were then paid several-hundred dollars to claim they were injured in an accident. The recruits were then sent to medical clinics where insurers were billed for unnecessary treatment.
? A Long Island, N.Y.-based body shop, its owner and its manager, who were indicted on 23 counts of insurance fraud. According to the indictment, defendants exaggerated damages to cars and failed to do the repair work for which they were paid.
? Nineteen members of two insurance-fraud rings in Queens and Nassau Counties, who were arrested on various fraud charges. The group ran a personal-injury scheme that sent auto-accident victims to corrupt medical facilities and billed for unnecessary medical treatments. Those arrested included three personal-injury attorneys, two former New York City police officers, two insurance brokers, several middlemen, and the operators of various medical clinics.
? Eighteen Suffolk County residents, who were arrested for defrauding the state's workers' compensation system of $550,000. Among those arrested were two teachers, the owner/operator of a limousine service and a chiropractor.
? The ringleader and four participants in a Queens-based fraud scheme, who were arrested for the theft of luxury autos. Some vehicles were stolen off the street or given up by their owners to collect insurance settlements.
? Sixteen New York residents, including one former and four active New York City police officers, who were charged with the theft of $750,000 from seven insurers. The scheme involved submitting fraudulent auto-accident reports in order to receive insurance compensation.
? Four psychotherapists, who were involved in a no-fault fraud ring. They were charged with fraudulently billing for counseling services they claimed were provided to hundreds of auto-accident victims. According to the indictment, the defendants were involved in submitting falsified no-fault claims totaling $88,000.
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