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Dozens Arrested In NY, NJ In Connection With Alleged Insurance Fraud Scheme

NEW YORK (CBSNewYork) — Authorities say over three dozen suspects were arrested Wednesday for allegedly defrauding insurance companies of millions of dollars.

LISTEN: 1010 WINS’ Carol D’Auria reports

Officials say 35 suspects, including ten doctors and three attorneys, were taken into custody in New York and New Jersey and are expected to be arraigned later in the day. A 36th suspect was arrested in Minnesota.

Many of the suspects are accused of being part of a Russian organized crime family.

WCBS 880’s Irene Cornell On The Story

Federal prosecutors say they billed Medicare and Medicaid for medically unnecessarily treatments stemming from auto accidents.

The fraud amounted to more than $279 million over the course of several years, in what prosecutors called “largest single no-fault automobile insurance fraud ever charged.”

FBI Assistant Director-in-Charge Janice K. Fedarcyk issued a statement that said in part:

“The criminal enterprise, while it lasted, was obscenely profitable. The scheme not only unjustly enriched the defendants and defrauded insurance companies. Auto insurance fraud is also a crime that indirectly victimizes every driver in New York.”

“Today’s charges expose a colossal criminal trifecta, as the fraud’s tentacles simultaneously reached into the medical system, the legal system, and the insurance system, pulling out cash to fund the defendants’ lavish lifestyles,” U.S. Attorney Preet Bharara said in statement.

The suspects face insurance fraud, racketeering, money laundering and other charges.

Please share your thoughts below…

  • David Turk

    This has been going on for years. Why did it take so long to put these people out of business? The insurance companys must have known but turned a blind eye toward it; just as long as they were making money it was ok.

  • jackson

    Russians?? You mean jews?

  • adios amigos

    sounds like RUSSIAN Mafia to me…………….

  • Truthandonlytruth

    When will you understand that Russian is not the one who speaks the language, you have been fooled… Jews motherland is Israel, send Jews who speak Russian language to Israel, where they belong…

    • adios amigos

      spoken like a true racist………..

  • Bullett

    Many of the suspects are accused of being part of a Russian organized crime family.

    Does Putin know about this????????????

  • adios amigos

    after they serve long prison sentences,send them back to Russia,where they belong!

  • Corruption Is Rampant!


  • Michael Wind

    true the mob is alive and well,and nothing that compares to south florida where the local police is on the payroll of the mob.

  • stoley eisenhower

    the mob is alive and well.

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