Greed drove $23M auto insurance fraud at chiropractic clinics, feds say - Insurance News | InsuranceNewsNet

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March 21, 2018 Newswires
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Greed drove $23M auto insurance fraud at chiropractic clinics, feds say

South Florida Sun Sentinel (FL)

March 21--Even Andrew Rubinstein admits he was motivated by greed when he got involved in an elaborate $23 million auto insurance fraud that operated for years in chiropractic clinics in South Florida.

His desire for a more comfortable life was part of a circle of fraud that federal prosecutors said cost the rest of us -- by pushing up the cost of insurance for millions of drivers.

Rubinstein, who was part of a corrupt group of clinic owners, chiropractors and attorneys that operated mostly in Broward, Palm Beach and Miami-Dade counties, was sentenced Wednesday to six years in federal prison.

"He did it for greed. He did it because he wanted a better lifestyle. He did it for money," prosecutor Jeffrey Kaplan said.

The crime ring raked in at least $23 million from 10 auto insurance companies in the seven years it operated, ending with a series of arrests in 2017.

The fraud involved ripping off auto insurance companies by illegally billing for Personal Injury Protection (PIP) insurance money under Florida's no-fault law.

Rubinstein, 48, of Miami, and the self-confessed ringleader, Felix Filenger, 41, of Sunny Isles, have both been locked up in the federal detention center in downtown Miami since they were arrested in October. Both men pleaded guilty to a racketeering conspiracy charge last year.

The fraud involved paying kickbacks of $1,500 to $2,000 -- per patient -- to tow truck drivers and body shop workers who illegally steered accident victims to chiropractic clinics that were secretly owned or controlled by Rubinstein and Filenger and their helpers.

Some of the "patients" were also steered to attorneys who told them they might be able to receive compensation from the insurance companies by filing insurance claims or lawsuits.

The so-called "runners" had access to what were supposed to be confidential crash reports when they towed or repaired vehicles and used that opportunity to refer drivers and passengers to the clinics.

The fraudsters required the "patients" to seek unnecessary and excessive treatment, investigators said.

Clinic workers then required the patients attend multiple visits, sometimes 15 or more. Workers at the clinics documented exaggerated pain levels and quickly billed insurance providers for the maximum $10,000 allowed for rapid emergency treatment under Florida law.

Rubinstein, also known as Andrei Rubinsteyn, immigrated from Ukraine more than 20 years ago and became a U.S. citizen. He told the judge he sincerely regrets his crimes.

"I'm truly sorry for my selfishness, which brought us all here today," Rubinstein told U.S. District Judge Beth Bloom.

___

(c)2018 the Sun Sentinel (Fort Lauderdale, Fla.)

Visit the Sun Sentinel (Fort Lauderdale, Fla.) at www.sun-sentinel.com

Distributed by Tribune Content Agency, LLC.

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