Damian Williams, United States Attorney for Southern District of New York Michael J. Driscoll Assistant Director-in-Charge of the New York Office of Federal Bureau of Investigation (“FBI”) Miriam E. Rocah and Kevin P. Bruen, Superintendent of New York State Police (“NYSP”) and Keechant Swell, Commissioner of New York City Police Department (“NYPD”) announced the abolition of two indictments against 13 people – including an NYPD officer, licensed doctors, and an attorney a million scheme to fraudulent $100 million auto insurance fraud scheme.
Eight of the 13 defendants are facing indictment. The indictment details conspiracies for healthcare fraud, money laundering, obstruction, making false statements, and aggravated theft. The United States v. Alexander Gulkarov et al. 22 Cr. 20 (the “Gulkarov indictment”) has been assigned by U.S. District Judge Failla. In the United States et al., 22 C. Cr., five additional defendants are also charged. 19 (the “Pierre indictment”) has been assigned by U.S. District Judge Torres.
Ten of those defendants were detained in New York City and New Jersey this morning. They will appear in Manhattan federal court before U.S. magistrate Barbara Moses later Today. Alexander Gulkarov (11th defendant) was taken into custody in Miami, Florida. He is due to appear in front of a U.S. Magistrate Judge for the Southern District of Florida.
U.S. attorney Damian Williams stated that the thirteen defendants facing indictment Today are accused of having collectively committed one of the most extensive no-fault insurance frauds ever. They allegedly bribed 911 operators and hospital workers for motor vehicle accident victim information. They then used this information to put victims at risk by causing them unnecessary and sometimes painful medical procedures to fraudulently bill insurance companies. The scheme to exploit no-fault insurance laws, which ironically exist to make insurance more affordable, can also lead to higher costs and unfairly burden consumers in the auto market.
Michael J. Driscoll, FBI Assistant Director, stated that no-fault accident programs, such as the one being alleged Today, can result in insurance companies paying millions to doctors and clinics for phony or unneeded services to accident victims. These costs are almost always passed on to the consumers of private insurance and subsidized programs that help the most vulnerable. This is a dangerous game, and the penalties can include federal criminal charges.
Miriam E. Rocah, Westchester County District Attorney, stated that “this case is a perfect example of federal, state, and local law enforcement working together to investigate and take down two criminal organizations that allegedly fraudulently insured companies and exploited vulnerable people by putting them through unnecessary, harmful and sometimes painful medical treatments for the sakes of greed and profit.” We will continue collaborating with law enforcement partners to hold those responsible for manipulating the insurance system that so many people rely on, especially when the alleged perpetrators were professionals who allegedly violated their oaths to serve and protect.
Kevin P. Bruen, State Police Superintendent, stated that these indictments resulted from years worth of investigation and would not have been possible without the cooperation of federal, state, and local authorities. Our analysis revealed a complex, large-scale scheme that led to millions of fraudulent insurance claims. This fraud hurts the whole system and leads to higher premiums for policyholders and companies. I commend our law enforcement partners and our members for their efforts in this case. We are sending a clear signal that we won’t tolerate fraud at any level.
Keechant Sewell, NYPD Commissioner, stated that “Today’s charges reflect schemes to profit from exploiting victims’ through fraudulent. I am grateful to the NYPD detectives and FBI agents, as well as the prosecutors of the United States Attorney’s Office Southern District of New York, for their cooperation and long-term efforts in this investigation into alleged fraud in healthcare, money laundering, and bribery. We will all continue to fight crime wherever it happens, together.
According to the Indictments [1], which were not sealed Today at Manhattan federal court,
Background of Investigation
The U.S. Attorney’s Office in the Southern District of New York, FBI, and Westchester County District Attorney’s Office is investigating several criminal organizations involved in widespread healthcare fraud and corruption. They used the New York and New Jersey no-fault automobile insurance systems to make millions of illegal profits.
New York’s and New Jersey’s no-fault insurance laws mandate that an automobile insurance company pay auto insurance claims for inevitable motor vehicle accidents. The claim must be legitimate, and below a specific monetary threshold (the “No-Fault Laws”) These requirements require that insurance companies pay medical providers directly for treatment they provide to victims of automobile accidents. This avoids lengthy disputes and the associated costs of an extensive investigation.
The Gulkarov indictment
Eight individuals are charged in the GulkarovIndictment with conspiring to exploit No-Fault Laws. The scheme involved the fraudulent ownership and control of more than 12 medical professional corporations, including acupuncture and chiropractic practices. They also paid licensed medical professionals to use the licenses to incorporate the professional corporations (collectively the “Gulkarov clinics”). Gulkarov Conspirators also defrauded automobile insurers by charging insurance companies for unnecessary, dangerous, and excessive medical treatment and lying to representatives of insurance companies.
Gulkarov Conspirators facilitated the scheme by bribery. Co-conspirators, the “Runners,” were paid hundreds of thousands of dollars by the Gulkarov Conspirators. They used this money to bribe 911 operators and hospital workers for motor vehicle accident victim information. The Runners then used this information to contact victims of automobile accidents, lie to them and invite them to seek treatment at the Gulkarov Clinics.
Gulkarov Conspirators used the proceeds from the fraud scheme to buy luxury cars, watches, vacations, and other items through shell companies, law firms, check-cashing entities, and shell companies. They fabricated documents, lied to law enforcement, and committed perjury in front of a federal grand jury. When they learned they were being investigated by federal authorities, and some conspirators obstructed justice.
According to rumors, the Gulkarov Conspirators’ leaders are not doctors. These include ALEXANDER GULKAROV (a/k/a Little Alex), ROMAN ISRAILOV (a/k/a Roman Matatov), PETER KHAIMOV (a/k/a Peter Khaim”) and ANTHONY DIPIETRO. ROLANDO CHUMACEIRO a/k/a “Chuma” and MARCELO QUIROGA were licensed medical practitioners who incorporated medical practice as part of the scheme. According to the No-Fault Laws, they prescribed unnecessary and excessive treatment and overbilled insurance companies.
ROBERT WISNICKI Esq. is also charged in the GulkarovIndictment. He is the founder partner of two New York-based law companies. WISNICKI is accused of laundering hundreds of thousands of dollars in illicit proceeds for the Gulkarov Conspiracy leaders. He allegedly concealed these transfers by constructing retainer agreements, lying before law enforcement, and perjury before the federal grand jury.
The GulkarovIndictment also includes a charge against ALBERT ARONOV, an NYPD officer. According to the allegations, ARONOV used the off-hours hours of NYPD computers to search for motor vehicle accident reports on NYPD’s servers. These reports contained confidential information that the leaders used to contact motor vehicle accident victims and lie to them. ARONOV took photographs of the words with a pre-paid phone called a “burner” and sent the photos to the Gulkarov Conspiracy leaders via encrypted messaging. They then directed them to the Gulkarov clinics for medical treatment. When later interrogated by federal agents, ARONOV lied about his involvement with accessing and disseminating confidential motor vehicle accident records.
The Gulkarov Conspirators charged insurance companies more than $30,000,000 for fraudulent medical treatment.
The PierreIndictment
Five additional people (the “Pierre Conspirators”) are also charged in the PierreIndictment with participation in a second criminal scheme that exploited No-Fault Laws. Five medical service corporations, including a medical clinic and an MRI center, were fraudulently owned by the Pierre Conspirators. They paid licensed medical professionals to use their licenses to incorporate the professional corporations (collectively called the “Pierre Clinics.” Further, the Pierre Conspirators defrauded automobile insurers by charging insurance companies for unnecessary, dangerous, and excessive medical treatment, falsifying reports about clinical injuries, and lying to representatives of insurance companies.
The Pierre Conspirators promoted the scheme through bribery. The Pierre Conspirators paid hundreds of thousands to the Runners. They used this money for bribes to secure confidential information about motor vehicle accident victims. These victims were then encouraged to seek treatment at the Pierre Clinics by the Runners, among other places.
The Pierre Conspirators used phony loan agreements and shell companies to launder the proceeds from the fraud scheme.
BRADLEY PIERRE is alleged to be the leader of the Pierre Conspiracy. He is not a doctor. PIERRE could conduct a large part of the No-Fault Scheme out of his physical office in a law company owned by a relative (“Law Firm-2”). He communicated with co-conspirators via Law Firm-2 email domain and met with doctors in Law Firm-2 offices. PIERRE also openly expressed with Law Firm-2 regarding the scheme, such as telling his family member, “I’m going make sure you ALWAYS meet your quota.” Law Firm-2 paid PIERRE more than $4 million for the No-Fault Scheme – usually from Law Firm-2’s Interest on Lawyers Trust Accounts (“IOLA Accounts”) – but did not maintain any documentation or ledgers identifying their purpose.
Two licensed physicians were also charged with participating in the scheme by the Pierre Incarceration. MARVIN MOY, a doctor of osteopathic medicine, agreed to allow PIERRE unnecessary and painful electrodiagnostic testing for patients. WILLIAM WEINER, a doctor in osteopathic medicine, incorporated a medical imaging center as part of the scheme. He also agreed with PIERRE that he would falsify clinical injuries in MRIs to increase patient referrals.
The PierreIndictment finally charges two individuals conspiring to pay PIERRE bribes to facilitate this scheme. ARTHUR BOGORAZ, a paralegal and manager of a New York-based law firm for personal injury (“Law Firm-1”), is a paralegal. BOGORAZ, PIERRE, and others agreed to pay bribes in return for client and patient referrals to Pierre Clinics and Law Firm-1. ANDREW PRIME was a runner who bribed 911 operators and ran an additional call center as part of the scheme.
The Pierre Conspirators charged insurance companies more than $70 million for fraudulent medical treatment.
* * *
Congress set these maximum sentences. They are only informational and will not be used to determine the sentencing of defendants.
Mr. Williams expressed appreciation for the FBI, New York State Police, and New York City Police Department’s work, the New York City Department of Financial Services, Westchester County District Attorney’s Office, and the National Insurance Crime Bureau. The investigation is still ongoing, Mr. Williams said.
The White Plains Division and the Office’s Complex Frauds and Cybercrime Unit handle this case. The prosecution is being conducted by Mathew Andrews, Assistant United States Attorneys, and Louis A. Pellegrino.
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Gulkarov Indictment
Gulkarov Indictment
| Defendant | Age | Hometown | Charges (Potential Maximum Term of Imprisonment) |
| ALEXANDER GULKAROV, a/k/a “Little Alex.” |
Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, obstruction conspiracy, aggravated identity theft (42 years)
|
||
| ROMAN ISRAILOV |
Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, aggravated identity theft (37 years)
|
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| PETER KHAIMOV, a/k/a “Peter Khaim.” |
Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, aggravated identity theft (37 years)
|
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| ANTHONY DIPIETRO | Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy; obstruction conspiracy
(40 years) |
||
| ROLANDO CHUMACEIRO, a/k/a “Chuma” |
Healthcare fraud conspiracy (10 years)
|
||
| MARCELO QUIROGA |
Healthcare fraud conspiracy (10 years)
|
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| ROBERT WISNICKI |
Money laundering conspiracy, obstruction conspiracy (25 years)
|
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| ALBERT ARONOV |
False statements (5 years)
|
Pierre Indictment
| BRADLEY PIERRE |
Healthcare fraud conspiracy, money laundering conspiracy, Travel Act conspiracy, aggravated identity theft (37 years)
|
||
| MARVIN MOY |
Healthcare fraud conspiracy, money laundering conspiracy (30 years) |
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|
WILLIAM WEINER
|
Healthcare fraud conspiracy, money laundering conspiracy (30 years)
|
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|
ARTHUR BOGORAZ
|
Travel Act Conspiracy (5 years)
|
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| ANDREW PRIME |
Travel Act Conspiracy (5 years)
|