KNOWING VIOLATION OF NEW JERSEY INSURANCE FRAUD PREVENTION ACT, N.J.S.A. 1733A-4(B)

By: Danyelle H. Golland, Esq.

On May 4, 2017, the New Jersey Supreme Court overturned the ruling of the Appellate Division and found Daniel H. Dahan, D.C., Scott Neuner, D.C. and Northfield Medical Center, P.C. violated the New Jersey Insurance Fraud Prevention Act by creating a sham professional practice structure. Attorney Robert P. Borsody, Esq. and Daniel H. Dahan, D.C. worked together to create a corporate structure with the intent to evade New Jersey rules regarding ownership and control of a medical practice by a non-doctor. The Supreme Court reversed the Appellate Division decision and determined that under N.J.S.A. 17:33A-4(b), the defendants knowingly violated the IFPA through assisting a New Jersey chiropractor in the creation of an unlawful multi-disciplinary practice which submitted medical insurance claims to Allstate. Amicus briefs were submitted on behalf of the Medical Society of New Jersey, the American Medical Association and the New Jersey Dental Association in support of the defendant doctors. The case has been remanded to the Appellate Division.

A copy of the case is attached.