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The Nation

600 Indicted in N.Y. Insurance Fraud Inquiry

August 13, 2003|From Associated Press

GARDEN CITY, N.Y. — Hundreds of people -- including doctors, lawyers, chiropractors and psychologists -- have been indicted on insurance fraud and other charges involving tens of millions of dollars in claims on staged auto accidents, Suffolk County Dist. Atty. Thomas Spota said Tuesday.

Nearly 600 indictments have been filed in connection with the alleged fraud ring, and further charges are likely, Spota said.

In all of the accidents, the insurance company was State Farm, which allegedly was defrauded out of $48 million -- an average of $800,000 in claims per accident, prosecutors said.

The charges followed a yearlong investigation into accidents on Long Island, which includes Suffolk County, and in New York City, Spota said. Only 86 defendants have been arraigned, but the remaining indictments are expected to be unsealed in the coming weeks, he said.

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