FORMER NEW JERSEY CHIROPRACTOR INDICTED IN MEDICAL INSURANCE FRAUD RING

By: Rafael A. Llano, Esq.

Former New Jersey chiropractor, Philip Potacco, faces criminal charges due to his alleged role in a $4 million dollar medical insurance fraud ring. Authorities allege that Potacco used Medical Consulting Group to recruit accident victims and stage car accidents. Potacco, whose chiropractic license was revoked in 2002, allegedly hired a licensed chiropractor to act as owner of the group. “Runners” referred victims of legitimate and staged accidents to the group, and Potacco submitted fraudulent insurance claims for treatment rendered.

Moreover, Potacco allegedly received fees to act as a runner for a South Orange personal injury attorney, whom he referred patients that had received “treatment” from the group. The indictment names Potacco, Medical Consulting Group, and six other defendants that played a part in the scheme.

Acting Insurance Fraud Prosecutor Christopher Lu stated:

“This case sends a message that conspiracy to corrupt and victimize the healthcare insurance system will not be tolerated in New Jersey...Anyone who plays a part in defrauding insurers – from the mastermind to the middlemen to the minions – will be prosecuted.”

In addition to criminal penalties, perpetrators of insurance fraud may be liable to private insurance companies for civil damages. Insurance companies victimized by medical insurance/PIP fraud may pursue damages in a civil action pursuant to the New Jersey Insurance Fraud Prevention Act, N.J.S.A. 17:33A-1 et. seq.

For the full story: http://www.nj.gov/oag/newsreleases16/pr20160415c.html