Insurers Awarded $4 Million in MA Chiropractor Fraud Case

Several Insurance companies have been awarded millions of dollars in damages from two former chiropractors and the clinics they own.

One of the four insurance companies that filed a lawsuit against Alan and Marc Cohen was Encompass Insurance. They alleged that the Cohen’s have been submitting fraudulent medical bills through their practices for staged motor vehicle accidents.

According to the Insurance Claims Journal, the Suffolk Superior Court in Boston, Massachusetts, has entered judgments against the brothers and former chiropractors, Alan and Marc Cohen, and ordered them to pay $1,155,129 in damages to Encompass Insurance.

In the judgment, the Court found Encompass was entitled to treble damages, attorney’s fees, and costs on its claims. Initially, the Cohen chiropractic clinics sued Encompass, stating that they were owed money for chiropractic services that patients were given due to automobile accidents. The Court dismissed all of the claims.

In return, Encompass countersued for fraud, conspiracy, unfair business practices, and violations of the Federal Racketeer Influenced and Corrupt Organizations (“RICO”) Act.

The Court agreed with Encompass, holding that the Cohen’s’ widespread use of “runners” to stage accidents and a “preestablished treatment recipe” for accident victims who became patients of the Cohen’s’ clinics, constituted fraud.

Another of the Insurance companies duped by the Cohen’s, The Commerce Insurance Company, is celebrating victory as well.

As noted in the Bradenton Herald, the Cohen’s were recently ordered by Judge John Cratsley to pay Commerce more than $3,835,900 in damages.

“This victory demonstrates the excellent results that can be achieved when insurers work proactively to protect their customers from insurance fraud schemes,” said Jaime Tamayo, President and Chief Executive Officer of MAPFRE U.S.A. Corp. and The Commerce Insurance Company. Mr. Tamayo further stated, “Commerce will continue to work diligently to combat all forms of insurance fraud to the benefit of our policyholders.”

The Commerce Insurance Company is said to be the largest writer of private passenger automobile insurance in Massachusetts and is part of the MAPFRE U.S.A. Group of Companies, which is the 19th largest writer of private passenger automobile insurance in the United States.