Encompass insurance recently announced a victory over a chiropractor who had been committing insurance fraud.
Jason Corbett, and his chiropractic clinics Franklin Field, Hyde Park and Union Street Chiropractic, were ordered to pay more than $859,000 dollars in damages for filing false insurance claims. Corbett had sued Encompass and other insurers claiming to be owed money for services rendered to patients involved in car accidents. However after an investigation, Encompass counter sued, alleging that Corbett had committed fraud, civil conspiracy and unfair business practices and was in violation of the Federal Racketeer Influenced and Corrupt Organizations (“RICO”) Act.
The judge agreed with Encompass, stating that Corbett was responsible for “misrepresentations” and that the fraud stemmed “from chiropractic patients treated at the Corbett clinics who were referred to the clinics by runners or who received unnecessary treatment . . . .”
This raises an interesting question for skeptics given the paucity of evidence to support the use of chiropractic in many procedures does this ruling imply many more cases could be brought?
This judgment follows a similar decision in May 2011, again in the Suffolk Superior Court in Massachusetts, that ruled in favour of four insurers in a $6 million racketeering and fraud lawsuit against brothers and chiropractors, Alan and Marc Cohen. The court ordered the Cohens pay Encompass $1.9 million in damages.
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