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.


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