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Oct 1, 2008 6:19 pm US/Central
Law Firm Pleads Guilty To Staged Accident Scheme
Reporting
Jack Fink
DALLAS (CBS 11 News) ―
Last May, a North Texas law firm and two chiropractors were accused of taking part in a staged car accident scheme.
Click here to watch video of the scheme.
Prosecutors say legal assistants who worked for Allen's firm solicited personal injury clients to stage auto accidents. The law firm executives were unaware of their actions.
From there, court documents show the clients were referred to the chiropractors in question. In return, the chiropractors would pay a cash kick-back out of any settlement proceeds received.
"The medical provider is now providing medical care - supposed medical care - for people who aren't injured, and then the lawyer picks up the case, writes the insurance company and threatens to sue the insurance company if they don't settle the claim," said Joseph Wehrle, Sr. with the National Insurance Crime Bureau.
Allen didn't want to talk about it, but this week his law firm pled guilty and agreed to pay more than $800,000 in restitution.
A grand jury also indicted two North Texas chiropractors, who pled not guilty. One of the chiropractors, Thien Tuan Vo, wouldn't comment on the case after he appeared in court last month.
The National Insurance Crime Bureau says it's a significant problem. According to the bureau, there have been nearly 350 staged car accidents schemes in North Texas since 2001.
Experts say this kind of scheme costs drivers an extra $300 a year on insurance premiums. The agency says it's working with law enforcement to quickly identify and break-apart these schemes.
"If we can get them behind bars, and we can reduce fraud, then you can keep insurance premiums down," said Wehrle.
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