More than 100 people charged with car insurance fraud in LA
LOS ANGELES - More than 100 people were indicted in what authorities say is one of the state's largest cases of auto insurance fraud for allegedly bilking companies out of hundreds of thousands of dollars, officials announced Wednesday.
In the scam, employees at a dozen San Gabriel Valley law firms would steer accident insurance claim cases to a chiropractic clinic, prosecutors said. The clinic in turn would overbill insurance companies by signing off on claims that inflated the number of visits for treatment, with payouts shared among clients, clinics and the firms.
Total losses were hard to estimate, but investigators said insurance companies were defrauded about $500,000 during the two-year probe.
Los Angeles County District Attorney Steve Cooley said the defendants were "fueled by greed."
"People who make a career out of defrauding insurance companies will be exposed and will suffer the consequences," he said.
The number of defendants - 101 in all - made it the largest auto insurance fraud case in Los Angeles County and one of the largest in California, authorities said. Thirteen are office administrators who allegedly worked as "cappers," two are attorneys and 86 are insurance claimants.
Indictments unsealed last week charged about 200 counts of insurance fraud, 64 counts of soliciting fees for referrals - known as capping - and three counts of unauthorized practice of law. One defendant, Jorge "JC" Yang, faces 117 counts alone.
The investigation itself was opened in September 2004 after an informant at a clinic complained to authorities about employees at law offices who allegedly referred cases in exchange for fees and kickbacks from chiropractic centers. Throughout the two-year probe, an investigator worked undercover as an office manager at a clinic in Alhambra.
At least 88 people have been arrested, with the rest either overseas or at large. All but a handful have posted bail. Arraignments were scheduled through next week.
According to state Insurance Commissioner Steve Poizner, insurance fraud of all types totals about $15 billion a year.
The investigation was conducted by the district attorney's office, the California Highway Patrol and the state Department of Insurance.
In the scam, employees at a dozen San Gabriel Valley law firms would steer accident insurance claim cases to a chiropractic clinic, prosecutors said. The clinic in turn would overbill insurance companies by signing off on claims that inflated the number of visits for treatment, with payouts shared among clients, clinics and the firms.
Total losses were hard to estimate, but investigators said insurance companies were defrauded about $500,000 during the two-year probe.
Los Angeles County District Attorney Steve Cooley said the defendants were "fueled by greed."
"People who make a career out of defrauding insurance companies will be exposed and will suffer the consequences," he said.
The number of defendants - 101 in all - made it the largest auto insurance fraud case in Los Angeles County and one of the largest in California, authorities said. Thirteen are office administrators who allegedly worked as "cappers," two are attorneys and 86 are insurance claimants.
Indictments unsealed last week charged about 200 counts of insurance fraud, 64 counts of soliciting fees for referrals - known as capping - and three counts of unauthorized practice of law. One defendant, Jorge "JC" Yang, faces 117 counts alone.
The investigation itself was opened in September 2004 after an informant at a clinic complained to authorities about employees at law offices who allegedly referred cases in exchange for fees and kickbacks from chiropractic centers. Throughout the two-year probe, an investigator worked undercover as an office manager at a clinic in Alhambra.
At least 88 people have been arrested, with the rest either overseas or at large. All but a handful have posted bail. Arraignments were scheduled through next week.
According to state Insurance Commissioner Steve Poizner, insurance fraud of all types totals about $15 billion a year.
The investigation was conducted by the district attorney's office, the California Highway Patrol and the state Department of Insurance.
posted by RonL @ 9:25 PM
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