A Webster, Mass.-based insurance company won a multi-million dollar civil insurance fraud lawsuit filed in Boston against chiropractic practices the insurer used to cover.
The Superior Court in Boston awarded the Commerce Insurance Co. more than $3.8 million in damages after counter-suing three chiropractic clinics, owned by Alan Cohen and Marc Cohen, in civil court for fraud, conspiracy, unfair business practices, and violations of the Federal Racketeer Influenced and Corrupt Organizations (RICO) Act, according to a statement from the insurer. The chiropractor clinics had sued Commerce Insurance for the money it allegedly owed for chiropractic services reportedly given to patients involved in automobile accidents.
The court found that the Cohens and their chiropractic clinics engaged in a pattern and practice of submitting fraudulent medical bills resulting from alleged motor vehicle collisions.
With prejudgment interest added to the judgment, the court’s total award to Commerce will likely exceed $4.5 million, the company said.The court agreed with Commerce, saying that the Cohens’ widespread use of “runners” and a “preestablished treatment recipe” constituted fraud.
The Cohen chiropractic clinics initially had sued Commerce, alleging that they were owed money for chiropractic services reportedly given to patients involved in automobile accidents. But the court dismissed all of the Cohen chiropractic clinics’ claims.
Commerce is the largest writer of private passenger automobile insurance in Massachusetts and is part of the MAPFRE U.S.A. Group of Companies, the 19th largest writer of private passenger automobile insurance in the U.S.
Mass. insurer wins $3.8 million from chiropractic clinics via IFAwebnews.com .
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