The State of New Jersey and an automobile insurance company have filed a lawsuit against two convicted, unlicensed New Jersey chiropractors seeking to recover medical payments that they received as a result of an alleged illegal scheme involving them, other chiropractors, a medical doctor, a personal injury lawyer in New Jersey and his paralegal, and “runners” who reportedly received up to $1,000 for each patient they recruited and referred to participating chiropractic clinics after they were involved in motor vehicle accidents.
The scheme was allegedly organized by the two chiropractors, who are brothers, who ran a statewide personal injury mill involving 78 doctors, personal injury lawyers, and runners who obtained police reports regarding motor vehicle accidents and then went to their homes or otherwise contacted them to convince them to seek medical treatment with the medical providers involved in the scheme.
The two chiropractors, who were unlicensed, reportedly used complicated management and marketing agreements to attempt to hide their financial interests in the chiropractic clinics manned by two licensed chiropractors that allegedly resulted in them receiving illegal kickbacks. The chiropractic clinics allegedly involved with the scheme were located in Camden, Middlesex, Hudson, Mercer, Ocean, Union, and Morris counties in New Jersey.
In May 2014, the two brother chiropractors were charged in a 45-count indictment for participating in an auto accident insurance fraud scheme that began in 2009.
On July 7, 2015, the two brother chiropractors both pleaded guilty to insurance fraud in the second degree in the criminal prosecution. The younger brother was previously convicted in Union County in 2004 on charges of racketeering, conspiracy, health care claims fraud, and theft. He was paroled and released from prison in 2008.
The medical payments fraud lawsuit was filed on January 3, 2017 and seeks recovery of millions of dollars of medical payments made from 2009 through 2013.
In announcing the lawsuit, the Commissioner of the New Jersey Department of Banking and Insurance stated, “This lawsuit is the latest in a series of actions taken by the Department, Allstate and other insurers to protect New Jersey customers who insure 5.5 million private passenger autos and are charged nearly $7 billion in written premiums. These and similar alleged fraudulent activities increase the cost of insurance to consumers.”
The Commissioner’s announcement further stated, “Today’s lawsuit follows an investigation by the Department’s Bureau of Fraud Deterrence (the Bureau), Allstate and OIFP. On behalf of New Jersey consumers, the Department is seeking a substantial, yet undetermined IFPA-mandated fine amount and Allstate is seeking reimbursement for personal injury protection benefits that Allstate paid on behalf of its customers. In 2015, the Bureau fined fraudsters more than $4.2 million in fines, surcharges and restitutions for various IFPA violations.”
If a chiropractor in your U.S. state caused you to suffer serious injuries, you should promptly seek the advice of a medical malpractice attorney in your state who may be willing to investigate your chiropractor malpractice claim for you and file a chiropractic claim on your behalf, if appropriate.
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