OFF BEAT: Fraud scheme hits no-fault auto insurers in New York

No-fault insurers couldn’t help but find fault with a group of individuals and a medical group in Queens, N.Y., after they bilked the companies out of thousands of dollars in fake medical claims.

A grand jury recently indicted five individuals and a Queens-based medical clinic for allegedly filing and collecting on bogus injury claims stemming from staged automobile accidents. According to the indictment, the medical group paid two “runners” to coach individuals posing as victims to exaggerate their injuries, steering them to Queens Integrated Medical Care in Queens Village, where they received unnecessary medical treatment.

Under New York’s no-fault auto insurance law, drivers are required to purchase at least $50,000 in medical insurance coverage to pay claims from auto accidents, regardless of who is found to be at fault.

Several auto insurers paid out more than $150,000 in the scam, according to the indictment.

The defendants were charged with various crimes including fraud, grand larceny and falsifying business records. If convicted, they each face up to seven years in prison and, in the case of a corporation, a fine of up to $10,000 or double the amount of the illegal gain.