Feds dismantle NYC auto insurance fraud ring

Feds dismantle NYC auto insurance fraud ring

NEW YORK (AP) — Authorities have dismantled what they’re calling the largest-ever fraud involving New York’s no-fault auto insurance law.

Federal prosecutors announced charges against 36 people today. They include 10 doctors and three attorneys.

The defendants are accused of trying to cheat insurance companies out of $279 million in phony medical claims. The actual loss was $113 million.

Investigators say the ring recruited real car accident victims for treatment at corrupt clinics. They say doctors prescribed a variety of unnecessary treatments and then submitted false claims to insurance companies.

The state law allows car accident victims to get up to $50,000 in benefits per person, no matter who was at fault.