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New Jersey brothers plead guilty to insurance fraud


Two New Jersey brothers pleaded guilty to an insurance fraud scheme on July 7. The brothers reportedly paid recruiters to bring in crash victims to chiropractic facilities that they owned. Additionally, the two brothers, ages 52 and 53, were accused of receiving kickbacks from a number of attorneys and certain medical providers after referring patients to those businesses.

The April 2014 indictment claimed that the brothers hid their ownership of certain chiropractic facilities between June 2009 and January 2014. Runners were then hired to bring patients into the facilities to receive treatment after obtaining accident reports. The management companies could then bill the patients' insurance carriers. Under New Jersey law, however, only licensed practitioners can own these types of facilities. Neither of the two brothers was reportedly licensed.

The two men ultimately pleaded guilty to second-degree insurance fraud. As per the plea agreement submitted by the men, the prosecutors will recommend a prison sentence of six and a half years. Additionally, they will also recommend a fine of $100,000. The cases against the alleged co-defendants were reportedly still underway when the brothers' pleas were made.

A person who is accused of fraud could potentially face a prison sentence and hefty fine. However, there are some defense strategies that a criminal law attorney can potentially use to either reduce the consequences or demonstrate that the defendant is innocent. For example, if the prosecutors do not have strong proof that the person only played a minor role in the fraud scheme, the attorney may potentially negotiate an agreement that provides for reduced penalties.

Source: Manalapan Patch, "Monmouth County Brothers Plead Guilty To Insurance Fraud", Michelle Sahn, July 8, 2015

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