Office of the Insurance Fraud Prosecutor Charges 12, Including Lawyer, Doctor and Two Chiropractors, in Alleged Scheme to Illegally Use Runners to…
Targeted News Service |
Acting Attorney General
Anhuar Bandy, 50, and his brother,
* Dr.
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The 12 defendants were variously charged with racketeering, conspiracy, criminal use of runners and other related charges.
"Today's charges uncover a massive criminal trifecta, as the fraud reached into the medical system, the legal system, and the insurance system, with the defendants ultimately extracting millions for their own uses," Acting Attorney
"Through this elaborate scheme, runners allegedly picked up motor vehicle accident reports at local police stations under the Open Public Records Act and used those reports to solicit patients to the chiropractic facilities," Acting Insurance Fraud Prosecutor
The indictment alleges that between
The indictment alleges that, in order to generate revenue for the chiropractic facilities, Anhuar and
The indictment alleges that, in addition to acting as a runner himself,
*
Frias allegedly recruited her mother,
The runners allegedly were paid up to
Walker and Gallegos allegedly met with patients at many of the chiropractic facilities in order to obtain the necessary paperwork to be retained by them as legal representation for bodily injury claims which the firm would take on a contingency basis. Walker and Gallegos allegedly accepted settlements from insurance carriers knowing that the clients had been recruited for treatment and representation through criminal activity. It is alleged that Walker and Gallegos knowingly paid "Kekk Marketing" to engage in running activity to recruit clients for the law firm.
As part of the scheme, Anhuar Bandy allegedly ordered the office staff at the chiropractic facilities to refer the overwhelming majority of the patients to Schwartz and/or his company, MLS Medical. The indictment further alleges that Formisano and Brown would allow their names to be used as a referring medical provider to justify the medical necessity of the referral to Schwartz. Schwartz, through his company MLS Medical, allegedly paid
Anhuar and
On
The indictment is merely an accusation and the defendants are presumed innocent until proven guilty. First-degree crimes carry a sentence of 10 to 20 years in state prison and a criminal fine of up to
The indictment was handed up to
Deputy Attorney General
Acting Insurance Fraud Prosecutor Chillemi noted that some important cases have started with anonymous tips. People who are concerned about insurance cheating and have information about a fraud can report it anonymously by calling the toll-free hotline at 1-877-55-FRAUD, or visiting the Web site at www.NJInsurancefraud.org. State regulations permit a reward to be paid to an eligible person who provides information that leads to an arrest, prosecution and conviction for insurance fraud.
The 12 defendants were charged in the indictment as follows:
* Anhuar Bandy, 50, of
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* Dr.
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TNS 30FurigayJof-140502-4722025 30FurigayJof
Copyright: | (c) 2014 Targeted News Service |
Wordcount: | 1956 |
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