Mealey's Insurance Fraud

  • May 11, 2020

    Doctor Charged For Fraudulently Billing For Purported COVID-19 Treatments

    DETROIT — A doctor was charged with counts of health care fraud and conspiracy to commit health care fraud in a criminal complaint filed in federal court in Michigan on April 24 for fraudulently billing Medicare and private insurers for treating patients with high-dose vitamin C injections to treat and prevent the contraction of COVID-19 (United States v. Charles Mok, No. 20cr, E.D. Mich.).

  • May 07, 2020

    Magistrate Judge Says Insurer Can Have Access To Windshield Installer’s Ledger

    TAMPA, Fla. — A federal magistrate judge in Florida on May 5 granted in part an insurer’s motion to compel seeking financial records, tax returns and the general ledger of a windshield company accused of submitting false claims for replacement, holding that while the insurance company can have access to the ledger, more discovery is needed to determine if it should be allowed to have copies of the tax returns and other financial information (Government Employees Insurance Co., et al. v. Sean Martineau, et al., No. 19-cv-1382-T-35SPF, M.D. Fla., 2020 U.S. Dist. LEXIS 78816).

  • May 06, 2020

    Insolvent Insurer’s Directors Seek Dismissal Of Breach Of Fiduciary Duty Case

    BATON ROUGE, La. — An insolvent insurer’s directors and officers filed motions on April 30 asking a Louisiana federal court to dismiss a rehabilitator’s breach of fiduciary duty lawsuit alleging that they intentionally misled state insurance regulators on the insurer’s true financial condition (James J. Donelon v. Jeffrey C. Pollick, et al., No. 20-177, M.D. La.).

  • May 06, 2020

    Judge Finds Counsel Was Effective, Refuses To Amend Insurance Fraud Sentence

    AIKEN, S.C. — An attorney for a man who pleaded guilty to participating in a scheme to submit applications for life insurance policies that included false information about the individual’s income, health and mortgage information acted effectively when representing him because the attorney was not required to cite cases from beyond the Fourth Circuit U.S. Court of Appeals, a federal judge in South Carolina ruled May 1 in denying the defendant’s motion to vacate his five-year prison sentence (United States v. Douglas Wade Williamson, No. 17-cr-987-JMC-11, D. S.C., 2020 U.S. Dist. LEXIS 77627).

  • May 05, 2020

    Trial Court Properly Considered Extrinsic Evidence In Fraud, Auto Suit

    AUSTIN, Texas — The Texas Supreme Court on May 1 reversed an appeals court’s ruling and reinstated a trial court’s ruling in favor of an insurer after determining that the trial court correctly considered extrinsic evidence when it concluded that an insured and a third party suing the insured colluded to make false representations in an underlying suit arising out of an auto accident (Loya Insurance Co. v. Osbalto Hurtado Avalos, et al., No. 18-0837, Texas Sup.,  2020 Tex. LEXIS 373).

  • April 30, 2020

    Diagnostics Company To Pay Up To $43M Over False Claims Allegations

    ASHEVILLE, N.C. — A clinical laboratory services company entered into an agreement in federal court in North Carolina to pay up to $43 million to resolve claims brought by a whistleblower doctor, the federal government and the state in a False Claims Act (FCA) suit alleging that it submitted fraudulent bills for tests that were not medically necessary, according to April 27 court filings (United States, ex rel. Daryl Landis v. Genova Diagnostics Inc., No. 17-341, W.D. N.C.).

  • April 29, 2020

    Judge Upholds Doctor’s Conviction For Health Care Fraud, Denies New Trial

    CHICAGO — A federal judge in Illinois on April 28 denied a doctor’s motion for acquittal and/or new trial, holding that the evidence presented by the government sufficiently supported his convictions for a fraudulent billing scheme involving manipulations under anesthesia (MUA) (United States v. Paul Madison, No. 12-cr-1004-1, N.D. Ill., 2020 U.S. Dist. LEXIS 74230).

  • April 28, 2020

    Man Ordered To Pay $3.4M, Serve 15 Months For Unnecessary Urine Tests

    PHILADELPHIA — A federal judge in Pennsylvania on April 24 sentenced a Florida man to 15 months plus one day in prison and ordered him to pay $3.4 million in restitution after he pleaded guilty to participating in a scheme involving the payment of kickbacks for medically unnecessary urine tests for patients receiving treatment at a drug and alcohol rehabilitation facility, the U.S. Attorney’s Office for the Eastern District of Pennsylvania announced (United States v. Jesse Peters, No. 19cr174, E.D. Pa.).

  • April 27, 2020

    Insurer’s Rehabilitator: Insurance Fraud Suit Should Be Remanded

    BATON ROUGE, La. — An insolvent insurer’s rehabilitator in an April 23 memorandum asks a Louisiana federal court to remand a suit against the insurer’s various directors and officers, banks and a loan officer over allegations that they intentionally misled state insurance regulators on the insurer’s true financial condition (James J. Donelon v. Jeffrey C. Pollick, et al., No. 20-177, M.D. La.).

  • April 24, 2020

    3rd Circuit Finds Scam Leader’s Sentence Properly Enhanced For Targeting Seniors

    PHILADELPHIA — A Third Circuit U.S. Court of Appeals panel on April 22 affirmed a man’s 50-month sentence for conspiracy to commit health care fraud, finding that a federal judge in New Jersey did not err when enhancing the defendant’s sentence because the scheme targeted elderly patients and used a charitable organization as a pretense and because he was a leader of the plan (United States v. Seth Rehfuss, No. 19-2166, 3rd Cir., 2020 U.S. App. LEXIS 12915).

  • April 23, 2020

    Fraudulent Misrepresentation Counterclaim Against Insurers Dismissed By Judge

    DETROIT — Medical providers cannot pursue a counterclaim for fraudulent misrepresentation against two insurers, a federal judge in Michigan ruled April 21, holding that the assignments of claims signed by insureds did not give the providers the right to assert tort claims against the companies (Liberty Mutual Fire Insurance Co., et al. v. Michael Angelo, et al., No. 19-12051, E.D. Mich., 2020 U.S. Dist. LEXIS 70075).

  • April 21, 2020

    Medical Transportation Driver Sentenced To 18 Months For Paying Kickbacks, Fraud

    SYRACUSE, N.Y. — A medical transportation driver was sentenced to 18 months in federal prison and ordered to pay $50,000 in restitution by a federal judge in New York on April 21 after the defendant pleaded guilty in July 2018 to charges of conspiracy to defraud the United States and health care fraud (United States v. Anthony A. Armstrong, No. 18cr190, N.D. N.Y.).

  • April 17, 2020

    Judge Refuses To Move Fraud Trial, But Will Increase Jury Pool

    HATTIESBURG, Miss. — A federal judge in Mississippi on April 15 granted in part an insurance fraud defendant’s motion for multidivision jury venire, finding that while an upcoming trial can be held in the same division, measures should be taken to expand the pool of potential jurors (United States v. Wade Ashley Walters, No. 19-cr-51-KS-MTP, S.D. Miss., 2020 U.S. Dist. LEXIS 66400).

  • April 16, 2020

    Nursing Home Chain To Pay $10M To Settle Claims It Billed For Unnecessary Rehab

    NORFOLK, Va. — Saber Healthcare Group LLC and related entities have agreed to pay $10 million to resolve claims that they violated the False Claims Act (FCA) by causing some of its nursing home facilities to submit claims to Medicare for rehabilitation services that were not reasonable, necessary or skilled, the U.S. Department of Justice (DOJ) announced in an April 14 press release (United States ex rel. Hope Wright, et al. v. Saber Healthcare Holdings, LLC., et al., No. 16-cv-640, E.D. Va.).

  • April 15, 2020

    False Claims Act Suit Over Rigged Preauthorization Scheme Survives Dismissal

    CHICAGO — A federal judge in Illinois on March 26 found that a former chief medical officer of a third-party company hired by insurers participating in Medicare Advantage (MA) plans to conduct preauthorization screenings sufficiently stated a claim against the company under the False Claims Act regarding its screening protocol, but dismissed her cause of action against the parent company (United States, ex rel. Susan Nedza v. American Imaging Management Inc., et al., No. 15 C 6937, N.D. Ill., 2020 U.S. Dist. LEXIS 52415).

  • April 15, 2020

    Services Provider To Pay $4M To Resolve 3 Fraudulent Billing Suits

    DETROIT — A company that provides rehabilitation services to more than 600 health care facilities in more than 30 states on March 31 entered into agreements in federal court in Michigan that require it to pay a total of $4 million to resolve allegations in three whistleblower suits brought under the False Claims Act (FCA) that accuse it of engaging in conduct that resulted in the submission of fraudulent bills submitted to Medicare by three skilled nursing facilities in Michigan (United States ex rel. Linda Anderson v. Encore Rehabilitation Services LLC, No. 14-cv-13759, E.D. Mich.,United States ex rel. Reza Saffarian, et al. v. Encore Rehabilitation Services LLC, et al., No. 16-cv-605, W.D. Mich., United States, et al., ex rel. Adam LaFerriere v. Encore Rehabilitation Services LLC, et al., No. 17-cv-95, W.D. Mich.).

  • April 14, 2020

    Insured Could Not Have Anticipated Lawsuits When Seeking Coverage, Judge Rules

    PHILADELPHIA — A federal judge in Pennsylvania on March 31 denied an insurance company’s motion for summary judgment in a lawsuit seeking to void a professional liability policy issued to a woman’s health care practice, finding that there is insufficient evidence to create a genuine dispute as to whether the insureds could have anticipated the filing of two medical malpractice lawsuits when completing the policy application (MDAdvantage Insurance Company of New Jersey v. Aaron S. Hasiuk M.D., et al., No. 16-969, E.D. Pa., 2020 U.S. Dist. LEXIS 55614).

  • April 14, 2020

    U.S. Attorney:  Hospital Will Pay $1.7M To Settle False Claims Act Allegations

    NASHVILLE, Tenn. — A regional hospital agreed to pay $1.7 million to resolve allegations that it violated the False Claims Act (FCA) when submitting unsubstantiated claims to Medicare for treatments from April 2013 through March 31, 2019, the U.S. Attorney’s Office for the Middle District of Tennessee announced April 13.

  • April 13, 2020

    Kentucky Panel Says Couple Should Undergo Examination To Support Accident Claims

    FRANKFORT, Ky. — A Kentucky appeals panel on April 10 affirmed two rulings in favor of Allstate Insurance Co., finding that a couple should undergo an examination under oath (EUO) to determine if injuries they sought personal injury protection (PIP) coverage for resulted from an automobile accident and that the lack of an EUO supported a ruling awarding summary judgment to the insurer in a separate action brought by the insureds demanding payment on the claim (Kelvin Thomas, et al. v. Allstate Insurance Co., Nos. 2016-CA-000939, 2017-CA-001019-MR, Ky. App., 2020 Ky. App. Unpub. LEXIS 253).

  • April 06, 2020

    Insurance Fraud Defendant Given Compassionate Release Due To COVID-19 Pandemic

    NEW YORK — A federal judge in New York on April 2 ruled that a 65-year-old man who has already served just over three years of a six-year prison sentence for his role in an insurance fraud scheme can serve the remainder of his prison term in his home with his wife, finding that his age and underlying medical conditions, which include end-stage liver disease and diabetes, warrant compassionate release in light of the COVID-19 pandemic (United States v. Mark Resnick, No. 12-cr-00152-CM, S.D. N.Y., 2020 U.S. Dist. LEXIS 59091).

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