Recent Announcement of $1.7 Million Medical Fraud Lawsuit Latest in String of Insurance Scams

new york assembly chamberNew York, NY-March 4, 2013…With the announcement last week that a national insurance company has filed a $1.7 million medical fraud lawsuit against two New York medical corporations, New Yorkers Stand Against Insurance Fraud (NYSAIF) is renewing its call on the state legislature to finally pass legislation to reform the state’s no-fault laws in the 2013 Legislative Session.

The lawsuit is the latest in a string of insurance fraud cases involving criminals who have exploited the state’s no-fault laws. Two weeks ago, the U.S. Attorney’s office announced that five defendants involved in the largest single no-fault auto insurance fraud scheme ever charged pled guilty to defrauding insurance companies of more than $400 million. The Insurance Information Institute estimates no-fault fraud is costing New Yorkers hundreds of millions of dollars year-after-year.

“This latest case is yet another example of criminals exploiting our laws at the expense and safety of New York drivers,” said NYSAIF spokesman David Schwartz. “Many states across the country have already addressed no-fault reform, but New York continues to lag behind. We cannot allow another year to go by without making meaningful changes to our insurance laws.”

More information about the lawsuit and the U.S. Attorney’s case can be found and

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