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Monthly Archives: April 2012

New Jersey Auto Insurance Fraud Case Charged

New Jersey Auto Insurance Fraud Case Charged

Friday’s Post  4/27/12 –  A New Jersey man pleaded guilty on charges to commit New Jersey auto insurance fraud against a number of New Jersey Car Insurance Companies  robbing them of $2,000,000.00 in insurance fraud claims. Prosecutors charged a Chiropractor on a single count of conspiracy to commit fraud by mail, engaging in a scheme based out of his chiropractic practice. The man  had two New Jersey offices which are no longer in operation.

In 2006, the  New Jersey man entered into conspiracy with an personal injury attorney and other accomplices to commit car insurance fraud against auto insurance companies by making claims using false information provided to insurance carriers, for accident claims directed by the injury attorney. The auto insurance claims made exaggerated statements regarding the patient’s condition and the costs incurred in caring for their injuries as a result of auto insurance accidents. The Chiropractor paid the lawyer cash, in excess of over one hundred thousand dollars for the fake patient and auto insurance claims information. The attorney then paid cash to auto insurance customer to find victims of automobile collisions that the attorney would then represent.

The chiropractor would use his practice to administer treatments to patients for 6 months without regard to the medical necessity, and refused to resolve the cases of patients without the authorization of the lawyer. At the end of the extended treatment period, the patient would be given a rating for partial disability, irrespective of their real physical condition. The patient received a rating for an auto accident prior to the patient being elevated for another auto accident treatment claim. The chiropractor also accepted responsibility for his knowledge that the lawyer was using an unlicensed doctor for medical records reporting. In addition to the scheme, was also the proprietor of a medical testing company providing tests to auto accident victims without any medical necessity. The unlicensed doctor would use the chiropractor for medical tests, believing carriers would raise settlement amounts under a doctor’s direction. If convicted of auto insurance fraud and related charges, the Doctor could spend 5 years in jail, and repay about three and a half million dollars in fines. Similar Auto Insurance Accident Fraud stories have been reported in PA, NJ, DE and OH. These Car Accident Schemes raise auto insurance rates and makes it difficult to shop for budget car insurance rates.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602

2012 Is A Good Year For Car Insurance And The Auto Insurance Industry

2012 Is A Good Year For Car Insurance And The Auto Insurance Industry

Post Date April 16, 2012 – Auto Insurance Companies are very enthusiastic regarding the premium generation this year even though 2011 was a very difficult year. Where profits were exceptional in earlier years, auto accidents spiked in 2012.  One good sign this year is increased premium.  Auto Insurance Rate collection has been much higher since auto… Continue Reading

Auto Insurance Company Advocates For Implementation Of Safe Driving Laws

Auto Insurance Company Advocates For Implementation Of Safe Driving Laws

Post Date April 13, 2012 –  The American Automobile Association called for more laws to ban text messaging, hand-held cell phones and other items which case distracted driving. The association expects law makers in fifteen states to pass driving laws barring such habits. 35 states have passed  new laws that bar drivers from sending or… Continue Reading

Auto Insurance Rate Reforms In Three States

Auto Insurance Rate Reforms In Three States

Post Date April 9, 2012 According to a report from the Insurance Research Council, market reforms introduced have led to significant improvements in delivery of auto insurance rates to customers in three states. The report focused on South Carolina, New Jersey, and Massachusetts, which have all carried out major auto insurance reforms in the past fifteen… Continue Reading

Pennsylvania And New Jersey Auto Body Shops And Burying Auto Insurance Deductibles

Pennsylvania And New Jersey Auto Body Shops And Burying Auto Insurance Deductibles

Post Date April 3, 2012 –  From time to time all body shop operators in Pennsylvania and New Jersey are faced with requests from an auto insurance customer to “bury the deductible” where auto damage is covered by comprehensive or collision auto insurance coverage.  At this point when the customer is told “no”, the customer… Continue Reading