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Thirty-six people, including 10 doctors and three lawyers, were charged in a no-fault auto insurance scheme that made more than $275 million.
The ring, which consisted mostly of Russian-born U.S. residents, used “medical fraud mills,” phony clinics that billed insurers for unnecessary treatments, according to the indictment.
Lawyers connected to the scheme filed fraudulent personal injury claims and suits to make additional money, the government said in the indictment. Charges against participants in the alleged scheme include racketeering conspiracy, health-care fraud conspiracy, conspiracy to commit mail fraud and conspiracy to launder money.
New York law requires vehicles registered in the state to carry no-fault insurance providing as much as $50,000 per person to cover injuries sustained in auto accidents, according to the government.
The case is U.S. v. Zemlyansky, 12-CR-171, U.S. District Court, Southern District of New York (Manhattan).
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