Financial Services Commission of Ontario: Ontario Rehab Centre Fined for Auto Insurance Offences

Ontario Rehab Centre has been convicted of auto insurance offences resulting from co-operative investigations involving the Financial Services Commission of Ontario (FSCO), the Insurance Bureau of Canada, multiple insurers, and the Toronto Police Service.

According to a media release, Ontario Rehab Centre was charged with two offences under the Insurance Act:

-Knowingly making false representations to State Farm to obtain payments for services provided to auto insurance claimants; and

-Charging amounts to State Farm for the payment of services that were not provided.

The Ontario Court of Justice found Ontario Rehab Center guilty on both counts and imposed the maximum fine of $100,000 on each of the charges, for a total of $200,000 in fines.

The court also ordered that the clinic provide restitution to State Farm for amounts that were proven to have been falsely billed and paid, in the amount of $609,112.

The conviction stems from an investigation into a staged auto accident ring, dubbed "Project Whiplash" by Toronto Police. According to the Insurance Bureau of Canada, insurers paid out an estimated $4 million in fraudulent claims as a result of this scam.

FSCO encourages anyone with information about auto insurance fraud to call its anonymous tips line (1-855-5TIP-NOW). The public can also submit anonymous tips to FSCO online through its website.

FSCO investigates allegations of misconduct, unfair practices and non-compliance with legislation or regulations in its regulated sectors. When warranted, FSCO takes enforcement action.

As other Insurance Act and related criminal prosecutions remain before the courts, there will be no further comment on the convictions from FSCO.

"Auto insurance fraud costs all drivers in the form of higher auto insurance premiums. Fraud will not be tolerated, and FSCO is committed to prosecuting these abuses" - Philip Howell, CEO and Superintendent of FSCO.

More information and complete details:

www.fsco.gov.on.ca

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