New York insurance scam took in over $1 million

New York officials have broken up a crime ring that cost state health and automobile insurance companies over $1 million.

New York officials have broken up a crime ring that cost state health and automobile insurance companies over $1 million.

Attorney General Andrew Cuomo reported on Wednesday that 12 people and nine corporations had been indicated for an elaborate scam that saw patients from minor automobile accidents allegedly lured to participating medical clinics for unnecessary treatments that were then billed to insurers.

Some patients were also apparently coached to exaggerate their injuries or completely fabricate them with an eye on filing false lawsuits, potentially costing insurance companies much more money.

"This criminal enterprise allegedly reaped over a million dollars in profits by engaging in bribery, insurance fraud, and the filing of fraudulent lawsuits - a complex scheme that violated hospital patients' privacy and may have driven up the insurance rates of millions of New York automobile owners," said Cuomo.

Showing how broad the scheme was, the list of those indicted included an attorney, two medical doctors and a variety of other healthcare professionals.

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Posted: July 9, 2009

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