D.C. Loses Insurance Case and Pays Big for Fraud

aroundtheworldBOSTON, MA– For the second time this year, The Norfolk & Dedham Group has won a significant insurance fraud/racketeering case filed against a chiropractor and his treatment facilities. By a Memorandum of Decision issued September 15, 2011, a judge sitting in the Massachusetts Suffolk Superior Court ordered Jason Corbett, and his chiropractic clinics (including Franklin Field, Hyde Park and Union Street Chiropractic) pay Norfolk & Dedham $1,138,453.42 dollars in damages.The litigation began when Jason Corbett’s Clinics filed hundreds of individual lawsuits against Massachusetts automobile insurers, including Norfolk & Dedham, in Courts throughout Massachusetts. In these complaints, Corbett sought payment for treatments allegedly provided to automobile accident victims. Norfolk & Dedham consolidated the Corbett lawsuits and filed a Complaint in Suffolk Superior Court for Fraud, Civil Conspiracy, as well as violations of the Federal Racketeer Influenced Corrupt Organizations (“RICO”) Act, and the Massachusetts’ Unfair Business Practices Statute.

During the discovery phase of the case, Corbett admitted that he violated Massachusetts Chiropractic Regulations by paying individuals, known as referrers or runners, as much as $500.00 dollars per person to solicit patients for his clinics. Moreover, chiropractors employed by Corbett admitted that they knowingly provided excessive and unnecessary services to patients.
In reaching its decision, the Court found that, “Jason Corbett, and his clinics, were all responsible for the misrepresentations created by their employees.” The Court concluded that “both as manager at the chiropractic clinics and of the chiropractors themselves, it is factually obvious that [Jason] Corbett had actual knowledge that the reports being prepared by the chiropractors contained false representations that the treatment rendered was reasonable and necessary.” The Judge further observed that, “In addition, it is beyond dispute that Corbett possessed actual knowledge that the false reports would be relied upon by the Insurers’ to their detriment.” For these reasons, the Court awarded Judgment in favor of the insurer on all,”. . . fraud claims stemming from chiropractic patients treated at the Corbett Clinics who were referred to the clinics by runners or who received unnecessary treatment . . .”

Norfolk & Dedham’s $1.1 million dollar award against Jason Corbett follows closely behind another significant victory in its ongoing battle against insurance fraud. On September 9, 2011, in a separate fraud/racketeering lawsuit filed against former Massachusetts chiropractors, Alan Cohen and Marc Cohen, the Suffolk Superior Court entered a Final Judgment ordering the Cohens pay Norfolk & Dedham $693,961.67 dollars.

“These two awards from the Court demonstrate Norfolk & Dedham’s resolve in combatting insurance fraud. Norfolk & Dedham will remain vigilant in rooting out insurance fraud in all forms,” said James T. Harrington, Executive Director of the Massachusetts Insurance Federation. The Massachusetts Insurance Federation is an insurance company trade association comprised of 24 property/casualty insurers and is viewed as the leading advocacy voice of the property/casualty insurance industry in Massachusetts. The Norfolk & Dedham Group is a member of the Federation.
Norfolk & Dedham Mutual Fire Insurance Company, Dorchester Mutual Insurance Company, and Fitchburg Mutual Insurance Company, do business as The Norfolk & Dedham Group.

SOURCE: The Norfolk & Dedham Group

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