11 People Charged in $1M Insurance Fraud Scheme

Eleven people, including the owner of a healthcare clinic in Bronx, N.Y., have been charged with enterprise corruption for their roles in a $1 million insurance fraud scheme, according to a report in the New York Daily News.

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In addition to clinic owner Daniel Levy, a lawyer, doctors, acupuncturists and chiropractors were also charged and face sentences up to 25 years in prison.

Mr. Levy, who apparently masterminded the scheme, recruited an attorney to bribe employees at Lincoln Hospital in the Bronx to provide the names of patients with minor injuries from car crashes that were eligible for no-fault insurance. The attorney then turned the information to associates of Mr. Levy who lured the patients to one of two clinics run by Mr. Levy, Bronx Sheridan Medical and New Life Bronx Medical. The patients then filed lawsuits that overstated their injuries and authorized Mr. Levy to perform unnecessary treatments.

Aside from the 11 individuals, nine corporations were also charged for participating in the scheme.

Read the Daily News’ report on the insurance fraud scheme.

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