5 Members of Slip-and-Fall Scheme Charged With Defrauding New York City-Area Businesses and Their Insurance Companies of More Than $31.7 Million
Manhattan
As alleged in the Indictment unsealed today in
Since 2013, the defendants have been engaged in a widespread fraud scheme through which the defendants defrauded businesses and insurance companies by staging slip-and-fall accidents and filing fraudulent lawsuits arising from those staged slip-and-fall accidents. The fraud scheme participants recruited individuals to stage slip-and-fall accidents at particular locations throughout
After the staged slip-and-fall accidents, recruited patients were referred to specific attorneys who would file lawsuits against the owners of the accident sites and/or insurance companies of the owners of the accident sites (the "Victims"). The lawsuits did not disclose that the recruited patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all. During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of at least
The recruited patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors. The fraud scheme participants advised the recruited patients that if they intended to continue with their lawsuits, they were required to undergo surgery. As an incentive to getting surgery, the recruited patients were offered a payment after they completed surgery as well as a percentage of any settlement payment from their lawsuit.
KALKANIS, a former chiropractor, was the organizer and leader of the scheme. As alleged in the indictment, KALKANIS paid his co-defendants to recruit patients into the scheme and transport the patients to medical and attorney appointments. KALKANIS also organized the recruited patients' legal and medical appointments, and assisted in procuring the funding for the recruited patients' medical treatment and lawsuits.
DUNCAN, GORDON, LOCUST, and RAINFORD helped recruit patients into the fraud scheme, transported patients to medical and legal appointments, identified potential accident sites, and coached recruited patients on faking their injuries.
KALKANIS, 70,
This case is being handled by the Office's General Crimes Unit. Assistant
The charges contained in the Indictment and Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Footnote:
1. As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
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