By Alex Davidson
Brown, standing with Police Department Commissioner Ray Kelly, said the charges were filed against a group of lawyers, doctors and other medical professionals who allegedly coordinated efforts in both Queens and Brooklyn to defraud insurance carriers after a two-year investigation. He said the defendants, including one from Richmond Hill and one from Forest Hills, have been charged with insurance fraud, grand larceny, falsifying business records, tampering with public records, falsely reporting an incident and conspiracy.
“With the successful conclusion of our investigation today, we have closed down a major insurance fraud ring based in Queens County and have sent a clear message that combating insurance fraud is a top law enforcement priority,” Brown said during a news conference Jan. 14 at Police Plaza in Manhattan. “No-fault insurance fraud is increasing at an alarming rate in New York and across the country and is costing the insurance industry about $23 billion nationwide each year.”
A spokeswoman for DA Brown said the defendants are charged with allegedly receiving $236,000 following false insurance claims during the two-year investigation. Each of the 32 defendants faces up to seven years in prison if convicted, Brown said.
The district attorney detailed the alleged scheme that includes the two borough medical clinics, 1st Modern Medical Care at 117-12 Myrtle Ave. in Richmond Hill and Lane Medical at 107-40 Queens Boulevard in Forest Hills and two defendants from Queens – Azriel Benaroya, 57, of 217-57 Kingsbury Ave. in Oakland Gardens and Emma Benjamin, 45, of 108-49 63rd Ave. in Forest Hills.
Brown said the attorneys, doctors and other medical professionals, using the two Queens clinics and a Brooklyn-based law firm and ambulette company, allegedly organized an operation that submitted false claims to insurance companies by staging automobile accidents and then saying they were entitled to compensation because of resulting property damage, medical expenses or bodily injuries.
“Insurance fraud is just another way for criminals to pick the pocket of the law-abiding public,” the NYPD's Kelly said. “This case demonstrates that no matter who is involved, they will be pursued, arrested and prosecuted.”
In the alleged scheme, the law firms of George Vishnevetsky and Alan Blumen at 2649 and 2653 Coney Island Ave. hired middlemen and runners who recruited clients for the firm for up to $3,000 per individual, the DA said. In turn, these clients would then allegedly be paid $500 to stage automobile accidents, seek unnecessary medical treatments and file false insurance claims, Brown said.
Brown described one incident during the police investigation, where in January 2003 in Richmond Hill an undercover police officer posing as a victim and seeking treatment at 1st Modern Medical Care had $11,000 in fraudulent claims filed in his name by the clinic. This included claims for medical tests, physical therapy and monthly re-evaluations based on fabricated complaints reportedly made by clinic workers.
U.S. Sen. Charles Schumer (D-NY), standing next to Brown during a news conference Tuesday, proposed a new federal and state partnership to create a task force that would fight fraud by toughening criminal penalties for those convicted in insurance scams. He said he would like to see sentences increased to 15 years in jail, with up to $100,000 in fines.
“If insurance fraud were a legitimate business, it would lead the Dow Jones industrial average,” Schumer said. “Fraud hurts us all and it's time to strike back.”
Reach reporter Alex Davidson by e-mail at news@timesledger.com or by calling 718-229-0300, Ext. 156.
