$1.1 Million Judgment in Massachusetts Chiropractor Fraud Case

May 19, 2011

The Suffolk Superior Court in Boston, Mass., has entered civil judgments against two brothers, former chiropractors, Alan and Marc Cohen, ordering them to pay $1,155,129 in damages to Encompass Insurance.

Encompass is one of four insurers that filed a lawsuit against the Cohens and their chiropractic clinics, alleging the chiropractors engaged in the practice of submitting fraudulent medical bills from staged motor vehicle accidents.

In Monday’s judgment, the Court found that Encompass was entitled to treble damages, attorney’s fees, and costs on its claims against the Cohens.

The Cohen chiropractic clinics initially sued Encompass, claiming they were owed money for chiropractic services reportedly given to patients involved in automobile accidents. The Court dismissed all of the Cohen chiropractic clinics’ claims.

In the lawsuit, 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 Cohens’ widespread use of “runners” to stage accidents and a “preestablished treatment recipe” for accident victims who became patients of the Cohens’ clinics, constituted fraud.

Source: Encompass Insurance

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