35 Charged in Personal Injury Insurance Fraud Sting in Philly

November 2, 2006

Nearly three dozen people face fraud charges after federal authorities set up a phony chiropractic clinic as part of a sting operation that focused on personal-injury claims from supposed automobile accidents, authorities said.

A lawyer, Jordan B. Luber, obtained a legal settlement on behalf of two FBI agents posing as injured patients from a traffic accident, according to federal authorities.

The 35 people charged also include 31 who sought payments based on false diagnoses and nonexistent treatment, and others who got fees from the clinic for bringing in phony patients, authorities said.

Patients at the Northeast Philadelphia clinic, called Injury Associates, were told up front that they were going to be part of a fraud, authorities said.

The scheme resulted in more than $1.5 million in settlement demands, and over $350,000 in insurance company payments on fraudulent claims, according to prosecutors.

“This kind of fraud affects the bottom line for all of us,” U.S. Attorney Patrick Meehan said in a statement. “We see higher insurance rates because some choose to exploit the system.”

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