Skeptic News: Chiropractic Fraud

From: The Jersey Journal

The owners of a Jersey City chiropractic center have pleaded guilty to failing to report more than $1 million in income and taking kickbacks from medical and legal service providers in exchange for referring car crash patients to them.

The owners of Chiropractic Centre on Central Avenue, Christopher J. Montana, 40, of Chester, and Fernando Barrese, 40, of Washington Township, pleaded guilty yesterday to filing fraudulent tax returns and to using “runners,” officials said.

“Dr. Montana and Dr. Barrese lined their own pockets by taking advantage of motor vehicle accident victims who came to them seeking treatment for their injuries,” Attorney General Jeffrey Chiesa said of yesterday’s pleas. “Ultimately the cost of such fraud is passed on to consumers through increased premiums.”

The state will recommend each chiropractor serves seven-year prison terms, pays $200,000 in restitution to 15 insurance companies, and suffers suspension of their chiropractic licenses for 18 months, officials said.

Barrese will be ordered to pay $240,451 in back taxes, penalties and interest and Montana must pay $71,032, officials said.

Oleg Gorodesky, 42, of Staten Island and Alcindor Robin, 57, of Elizabeth, have also been charged for their alleged roles in the scheme. Gorodesky was the office manager of Chiropractic Centre of Jersey City. Robin allegedly acted as a runner by soliciting patients to receive medical treatment from doctors who intended to file claims with insurance companies, officials said. The charges against Gorodesky and Robin are still pending.

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