Travelers Property Casualty Corp., Hartford, Conn., assisted the New York Attorney General's Office and the New York Insurance Department's Auto Fraud Unit in a major investigation that led to a 100-count indictment charging 11 people and seven corporations, including health care providers, attorneys and a network of recruiters, for engaging in a scheme to defraud insurance carriers of an estimated $1 million.New York's No-Fault law allows reimbursement to medical facilities for services provided to persons injured in motor vehicle accidents. The defendants are charged with manipulating New York's No-Fault system by soliciting motor vehicle accident victims to attend Queens-based IK Medical P.C., and submitting fraudulent claims for treatment that had not been provided and for medical procedures that were unwarranted. Among the charges the defendants face are scheme to defraud, money laundering, grand larceny, insurance fraud, and falsifying business records.
"We at Travelers Property Casualty would like to thank Attorney General Eliot Spitzer and the New York Insurance Department for their work in combating insurance fraud," said Kenneth W. Jones, vice president, special investigations unit, Travelers Property Casualty. "Personal Injury Protection fraud hurts consumers by adding significantly to the cost of auto insurance for every policyholder. Travelers focuses a great deal of resources on the mitigation of fraud, working closely with the authorities, to help control costs to our policyholders. We're pleased that the authorities are holding accountable those who scheme to enrich themselves to the detriment of our policyholders and the rest of the public."
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