Brooklyn, NY – Doctor Convicted Of Insurance Fraud

Brooklyn, NY – A Brooklyn doctor and his medical clinic have been convicted for crimes related to defrauding insurance companies under New York’s No-Fault Insurance Law, which provides payment to people injured in motor vehicle accidents.

A jury found Alexander Rozenberg and AR Medical Art, P.C. guilty after a six-week trial before Kings County Supreme Court Judge Joseph McKay.

AR Medical Art, P.C. was found guilty of first degree scheme to defraud, four counts of fifth degree insurance frand and five counts of first degree falsifying business records.

Rozenberg was guilty of one count of fifth degree insurance fraud and one count of first degree falsifying business records. He faces a maximum of four years in prison when sentenced on April 24.

Evidence shows that Rozenberg and his clinic, located in the Midwood section of Brooklyn, purported to treat people injured in real and staged car accidents and engaged in an elaborate scheme to defraud no-fault insurance carriers.

Patients were referred to AR Medical Art, P.C. through a network of paid “steerers” who solicited patients by staging motor vehicle accidents and by offering the clinic’s “services” to real car accident victims. Rozenberg would conduct cursory medical evaluations, fabricate patients’ symptoms, and falsely diagnose extensive soft tissue injuries.

Prosecutors said patients received a standard protocol of testing including MRI’s and neurodiagnostic treatments as well as multiple sets of costly medical supplies. In addition, they would often be referred for prolonged, unnecessary treatment including months of physical therapy, chiropractic care, acupuncture, and x-rays.

“This was an elaborate and well thought-out scheme to rip-off insurance companies, which in turn drives up premiums for all New Yorkers,” said Attorney General Andrew Cuomo. “Staging an auto accident is like playing with fire, and we are extremely lucky that no innocent bystanders were hurt”.

These convictions stem from a joint investigation conducted by Attorney General Cuomo’s Auto Insurance Fraud Unit, the State of New York Insurance Department Insurance Frauds Bureau, and the New York City Police Department’s Fraudulent Accident Investigation Squad, and included the use of court-authorized wiretaps.

The 20-month investigation resulted in three different indictments charging 25 defendants with various fraud counts, of which 20 of the defendants were charged with staging accidents and then attending AR Medical Art, P.C. and other medical clinics for treatment. Twenty-four defendants pleaded guilty to criminal charges in relation to their involvement with the scheme, including convictions against the ringleader of a staged accident ring and the clinic’s money launderer. As part of their pleas, these defendants were ordered to pay restitution totaling approximately $500,000. 2-21-09