Group paid recruits to fake car crashes, then get treatment at their clinics, feds say
A group of men from Florida and Kentucky recruited people to fake or stage vehicle accidents and then get treatment at their chiropractic clinics, authorities said.
Four of the men have been sentenced in the Western District of Kentucky, according to a Sept. 8 news release. One more man has a sentencing hearing scheduled for Dec. 6.
In court records, federal prosecutors said the group of five ran the scheme from about June 1, 2015, through Oct. 1, 2017.
During the years-long scam, they “recruited and paid individuals to participate in staged or fake automobile accidents,” authorities said. Some of the people they recruited were then told to seek treatment at their clinics, federal officials said.
“As a result of these acts, among others, automobile insurance companies were billed for and paid for unnecessary treatment at the chiropractic clinics, unnecessary injury settlement claims, and unnecessary property damage claims,” according to court records.
The defense attorneys representing the defendants did not immediately respond to requests for comment from McClatchy News on Sept. 11.
Court records show at least six people received treatment following a staged car wreck. Defendants then submitted, or caused to to be submitted, false health care claims to insurance companies, authorities said.
Now, four of the men have been sentenced, according to the news release.
A 40-year-old man from Riverview, Florida, was sentenced to two years and seven months in prison, followed by three years of supervised release, on counts of conspiracy to commit health care fraud and mail fraud.
A 57-year-old man from Louisville was sentenced to five years of probation on a charge of conspiracy to commit health care fraud.
A 47-year-old man from Louisville was ordered to spend 14 months in prison, followed by two years of supervised release, on charges of conspiracy to commit health care fraud and money laundering.
A 55-year-old Louisville man was sentenced to 14 months in prison, followed by two years of supervised release, on charges of conspiracy to commit health care fraud and mail fraud.
They were also ordered to pay $343,832.41 jointly, and severally, in restitution.
The fifth defendant, a 40-year-old man from Miami, will be sentenced later this year.
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