March 9, 2008

Auto Insurance Fraud Doctors Sentenced

Way back in March, 2005, Manhattan District Attorney Robert M. Morgenthau indicted fifteen people, including four doctors, a dentist, a psychologist, and an acupuncturist, on charges of participating in an insurance scam in which insurance companies and the N.Y.C. Transit Authority were over-billed for No-Fault insurance charges, for medical care arising out of automobile accidents. Also indicted were a medical billing company, two health care clinics that were also professional medical corporations and three other professional medical corporations.The defendants were charged with insurance fraud, grand larceny, attempted grand larceny and scheme to defraud. An examination of financial records revealed that the clinics billed more than sixty insurance carriers for millions of dollars in claims over a ten year period.Abraham Pustilnik, a/k/a Abraham Post, and his mother, Isabella Pustilnik, a/k/a Isabella Post, used their ownership of a medical billing company and their control of medical clinics and professional corporations to defraud insurance carriers who paid out claims believing that the clinics were providing legitimate services. They also cheated patients by providing them with inadequate or medically unnecessary procedures.The D.A.’s investigation revealed that the two Pustilniks, neither of whom is a doctor, operated Premier Medical Care and Omni Medical Care. They also […]

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