New York Insurance

The criminal prosecution authorities, said today it was cracked, in a related business fraud Ring, directed that thousands of road accidents, then occupied a network of doctors, therapists and clinics medical acupuncture false Bilk to an insurance company of $ 48 million.

Prosecutors and experts on insurance, said the ring was the largest ever in terms of their nature, New York State. A grand jury on Long Island, 567 charges, 86 were public in a press conference today. These include people accused of doctors, psychiatrists, chiropractors, dentists and nearly 20 permits health care clinics, as part of the system to cheat State Farm Insurance, the Suffolk County Public Prosecutor, Thomas J. Spota said.

”He is one of the biggest busts in the nation for its width, whose scope and parts of dollars,’’said Robert Hartwig, chief economist at the Insurance Information Institute, a industrial group. ”We are talking about the determination of an entire network. It is similar to the reduction of a drug kingpin.”

Mr. Spota said the ring verwendet”Läufer”und””Crash reduce dummies in cars, there is the priority as other cars which, furthermore, often women with children or elderly, in Slam the brakes, and that lead to a crash. The authorities said the investigation appointment until 2001, when she received the word of insurers, notes the same name has been jumping on several occasions in insurance claims. A rider was about 1000 accidents.

Although “Robinson Crusoe” of insurance fraud are known in New York, Suffolk County investigators and prosecutors, this network, traces its roots too Russian Brighton Beach section of Brooklyn, was particularly large and complex.

Mr. Spota would not link the series of frauds with Russian organized crime, but the assurance of a related business fraud lawyer familiar with the case of fingerprints said organized crime appeared to be of all. Some benefits of fraud were channelled to companies in Russia, while others were Funneling in a Swiss bank account and removed from Russian citizens, authorities said.

Insurance Fraud in New York, the rocket began in 2001, as criminal groups, driven by other parts of the country, including New Jersey, they could easily make the system operate in New York, said M . Hartwig. In the State does not fault insurance law, someone in a car accident injuries can receive up to $ 50000 for medical care.

”State of New York has the most problems in the country today, with auto insurance fraud,’’said Hartwig. ”It is the most open and the last cheque book in America today. It is a magnet for this type of abuse.”

The fraud, the tower is responsible for the conduct of these vehicles to auto insurance premiums in New York, and costs should be conducted to $ 432 million this year, “said Hartwig. A previous study by the Insurance Research Council found that insurance fraud added $ 177 per year for each driver in New York, headquarters of insurance.

The fraud began by accident in which a Läufer””würde recruit friends, relatives or strangers, many promises for $ 500 per unit for participation. The rider, they invite a robust American car - a general rule, an aging Cadillac or Lincoln - and driving on a highway, then turn an ignorant front of the driver causes an accident, usually a sheet of protection Bender . The accidents have been directed primarily at Brooklyn, Queens, Long Island and West Chester.

In the confusion, the driver would Darts of the car and ferried in another car, so that someone else, it remains the driver to prevent a number of accidents. Sometimes, the leave is the car would disgorge man, say that later, were in the accident, said Bob Clifford, a spokesman for the Suffolk County prosecutor.

The passengers then went to a series of false medical clinics in Brooklyn and Queens, was created specifically to address prosecutors said. The clinic management insurance records has not designated rights and a plethora of tests and procedures for submission and, sometimes, it is sometimes not, prosecutors charged.