Chiropractic Clinic Owner Convicted of Insurance Fraud

by ParkmanLaw on May 2, 2013

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Marion Young, co-owner of Private Chiropractic Care, has pleaded guilty to participating in a conspiracy to defraud various automobile insurance companies out of millions of dollars.  The scheme resulted in the submission of more than $3 million in false billing claims.  The insurance companies involved paid at least $1.2 million in false claims during a period from 2007-2009.

Young also admitted he participated in a two-year scheme to defraud insurance companies by recruiting alleged auto accident victims to be represented by a Bryan area law firm.  Once represented by the law firm, clients were sent to Private Chiropractic to be evaluated by chiropractor and co-defendant Chase Lindsey.  Lindsey agreed to provide medical evaluations and recommend treatment to patients in exchange for $2,000 in cash per months.  He routinely prescribed treatment that was unnecessary and never supervised the treatments allegedly administered.  Young was aware that the patients were not receiving most of the treatments prescribed and that they were not going to treatments on many of the days reflected on the Private Chiropractic bills. Young also knew the false Private Chiropractic Care billing was prepared at the law firm and that the fraudulent bills were used as support for settlement demand letters sent to auto insurance companies. The fraudulent demand letters caused the insurance companies to issue settlement checks, which were spilt between Young and others.

United States District Judge Kenneth Hoyt accepted the plea deal and has set sentencing for September 16, 2013.  Marion Young faces up to 20 years in prison and a possible $250,000 fine.  As part of the plea agreement, Young will also forfeit the $112,000 he received and also pay a restitution of $1.2 million to the insurance companies victimized by the insurance fraud scheme.

Three remaining defendants charged in relation to this case are scheduled to appear in court on September 24, 2013.

The criminal charges are a result of an investigation by the agents of the Federal Bureau of Investigation and the National Insurance Crime Bureau.  Assistant United States Attorney Al Balboni is prosecuting the case.

If you find yourself facing federal fraud charges, it is important to find an experienced  insurance fraud attorney to represent you. The white collar criminal attorneys of Parkman & White, LLC have a history of success in the court room and are ready to represent clients nationwide.

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