Bandy Brothers behind multi-level insurance fraud

They also have been charged with $100,000 fine and $50,000 reimbursement to insurance companies
Bandy Brothers behind multi-level insurance fraud
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Anhuar Bandy who is 54, and his brother Karim Bandy who is 55, were sentenced for accomplishing multi-level insurance scam as per the local authorities. Their sentenced have been decided for six-and-a-half-years for devising the scheme. Christopher S. Porrino, the attorney General and Christopher Iu, the acting Insurance Fraud Prosecutor stated on Monday.

They also have been charged with $100,000 fine and $50,000 reimbursement to insurance companies as they deceived millions through thousands of fraudulent claims made during a four-year period.

They ran the scam by paying illegal “runners” who recruited car crash victims as patients for chiropractic facilities which they ran. As per the officials, they offered bribes for referring these victims for medical and legal services which in turn was provided by others who were involved in this scheme.

While Karim Bandy was sentenced by Thomas M. Brown, a supreme court judge in Mercer City on Friday, Arthur Bandy was sentenced on 2nd June.

Attorney General called these brothers the “ringleaders of a morally bankrupt band of criminals” in his statement during the prosecution.

Porrino further added, “”They lured unsuspecting accident victims into their scheme and then steered them toward corrupt medical and legal professionals in exchange for cash. After years of illegally making money off the misfortune of others, the Bandy brothers are now paying the price for their criminal greed.”

Apart from Bandy brothers, thirteen other members had been convicted for their partnership in the crime. This includes a doctor, a lawyer, a paralegal, a licensed acupuncturist and three licensed chiropractors.

Lu said in his statement, “Our people have worked diligently to “unravel the defendants’ web of lies and deceit” and end a criminal enterprise that “compromised the care of vulnerable accident victims and undermined the integrity of New Jersey’s legal, medical and insurance industries.”

Back in 2015, bandys with 10 other co-defendants pleaded guilty against the charges. Anhuar and Karim were charged with controlling chiropractic facilities illegally through between 2009 and 2014. None of them are licensed chiropractor or medical doctor which is a per-requisite for owning a chiropractic facility.

They tricked bike victims in applying for the million-dollar insurance and then would ask insurance companies to pay for the service they never performed. The funds collected were sent to different accounts to serve Bandy Management companies. They paid upto $1000 for each patient that these runners brought to them.

These runners used public records of motor vehicle accident reports from local police stations and then approached these victims to their house and persuaded them and then drove them to the facility.

In January, the state and Allstate Insurance sued the brothers to recover wrongful payments and seek a “substantial” fine.

Anhuar Bandy was prisoned in 2004 for four years for racketeering, health care claims fraud, conspiracy and theft.

The others who were sentenced with Bandy brothers in the scheme are Dr. Mark Schwartz, David Walker, Alexandra Gallegos, Edward Formisano, Louis Brown, Gerald Roth, Sergey Lipschitz, Cesar Huaman, Estefania Frias and Bernardo Neiman.

There are others who were admitted into the Pretrial Intervention Program because of the charges in the indictment. They are Lillian Frias, Albert Lee Hughes, Anali Rivera. Rene Lacotera who is 39 is being sought under a fugitive warrant.

 

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