Eight Busted at “Corrupt” N.Y. Clinic

The arrest of eight individuals including doctors and chiropractors operating what officials deemed a “corrupt medical clinic” was announced today by New York’s Attorney General, Andrew M. Cuomo.  Police say the not-so-original scheme employed runners to recruit accident victims to undergo a host of unnecessary treatments at the clinic. 

According to a press release provided by the New York Attorney General’s Office, two doctors, two chiropractors, three acupuncturists and a clinic receptionist are all facing charges for allegedly bilking insurance companies out of thousands of dollars by fraudulent billing and providing unnecessary treatment. 

“According to the complaint, the defendants operated a corrupt medical clinic at 115-13A Merrick Boulevard in Queens, New York (“The Merrick Boulevard Clinic”). Auto-accident victims were allegedly recruited to the Merrick Boulevard Clinic by runners, who were paid by the Clinic for each patient solicited. Patients were directed by the runners and by clinic staff to attend the clinic multiple times per week for several months and were directed to undergo unnecessary treatments including initial evaluations, physical therapy, chiropractic treatment, acupuncture, and diagnostic testing.”

The arrests made were a part of a no-fault insurance investigation which included three undercover operations and court-ordered eavesdropping warrants.  The defendants are facing 70 counts of felony charges including Scheme to defraud in the First Degree, Insurance Fraud in the Third Degree, Insurance Fraud in the Fourth Degree, and Falsifying Business Records in the First Degree.

The charges against the defendants are merely accusations, and the defendants are presumed innocent until and unless proven guilty. A full list of the defendants can be viewed here, as well as a list of those who assisted in the investigation. The investigation remains ongoing.