Wednesday, August 13, 2003

Insurance Fraud Ring Broken Up

Hundreds of people -- including doctors, lawyers, chiropractors and psychologists -- have been indicted on insurance fraud and other charges involving millions of dollars in claims on staged auto accidents that prosecutors say was part of an organized crime ring with links to Russia. Nearly 600 indictments have been filed in connection with the Brooklyn-based fraud ring, and further charges are likely, Suffolk County District Attorney Thomas Spota said Tuesday. The charges follow a yearlong investigation into accidents that took place on Long Island and in New York City, Spota said. Only 86 defendants have been arraigned so far, but the remaining indictments are expected to be unsealed in the coming days and weeks. A grand jury on Long Island has issued 567 indictments, 86 of which were made public at a news conference in New York . Those indicted included doctors, psychiatrists, chiropractors, dentists and nearly 20 bogus health-care clinics that were set up as part of the scheme to defraud State Farm Insurance, according to Suffolk County district attorney, Thomas J. Spota.

The medical professionals were given a cut from the insurance payoff in return for their cooperation with the scam.

Of course, I am interested in the fact that psychiatrists and psychologists were arrested. You would think that such profesions would take a strong interest in promoting ethical behavior. However, as documented elsewhere, they do not seem to be.

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