New York No-Fault Fraudster Pleads Responsible, Agrees to Pay $40M in Restitution

A person whom federal prosecutors in New York say was the mastermind behind a $40 million car insurance coverage fraud scheme pleaded responsible on Friday to bribery, well being care fraud and establish theft expenses.

Alexander Gulkarov, 37, owned medical clinics within the New York Metropolis space that carried out pointless medical advantages and prescribed unneeded topical lotions and sturdy medical gear from 2014 to 2021, prosecutors say. He allegedly bribed a New York Metropolis police officer, hospital staff and 911 dispatchers to acquire the names of motorcar accident victims who could be coerced to obtain care by clinics that he managed.

Damian Williams, U.S. Lawyer for the Southern District of New York, stated the scheme was one of many largest no-fault insurance coverage frauds in New York historical past.

“This complicated scheme resulted in over $40 million in losses, which Gulkarov used to fund his lavish way of life, taking luxurious holidays and renovating his multimillion-dollar house,” Williams stated in an announcement. “This workplace has no tolerance for many who cheat the system to wrongfully enrich themselves, and we are going to proceed to dismantle wide-ranging schemes corresponding to this one.”

After reaching a plea settlement with prosecutors, Gulkarov pleaded responsible to at least one rely of conspiracy to commit bribery, one rely of conspiracy to commit well being care fraud and one rely of establish theft. He agreed to forfeit to the federal government the $40 million that he earned by the scheme and in addition pay $40 million in restitution, the US Lawyer’s workplace stated.

Solely licensed medical suppliers are allowed to personal medical clinics in New York. Gulkarov bribed medical practitioners to lie throughout examinations beneath oath in regards to the possession of the clinics the place they labored, prosecutors say.

In keeping with the felony expenses, Gulkarov directed physicians and different medical professionals to prescribe pointless remedies, drugs and sturdy medical gear. MRI services and ache administration medical doctors and different specialists paid kickbacks to Gulkarov for affected person referrals. Gulkarov organized for the pointless drugs that have been prescribed, corresponding to topical lotions and prescription painkillers, to be offered by pharmacies that he and his co-conspirators managed, prosecutors say.

As a part of the scheme, Gulkarov and others paid about$150,000 to create a name heart that was operated by Anthony Rose Jr., also called “Todd Chambers,” the US Lawyer’s Workplace stated. Rose referred to as accident victims and lied to them to induce them to hunt care at clinics that Gulkarov managed. Rose pleaded responsible to fraud expenses in July 2021 and was sentenced to 2 years in jail.

Prosecutors say that Gulkarov organized for a New York Metropolis police officer to ship confidential motorcar accident stories, together with greater than 400 pictures, from the police division’s servers.

Gulkarov used the Wisnicki & Associates and Wisnicki Neuhauser regulation corporations to launder the proceeds of the fraud scheme, based on charging paperwork. After a grand jury served subpoenas in 2021, Gulkarov fabricated retainer agreements, backdating them to 2016 and 2016, with a purpose to characterize that the regulation agency was offering authorized providers to the clinics that he managed, prosecutors say.

Lawyer Robert Wisnicki, the proprietor of the corporations, pleaded responsible in September to cash laundering, obstruction of justice and perjury expenses. He agreed to pay a forfeiture of $19 million and restitution of $18.8 million.

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Fraud
New York