New Jersey resident Bradley Pierre, 41, was given a ten-year federal prison sentence recently for his integral part in a colossal no-fault insurance scam ever witnessed in New York City. His actions included instructing doctors to commit perjury and bribing hospital staff to acquire the contact information of road accident victims.
Masterminding a $60 Million Scam
Pierre faced the sentencing at the Manhattan Federal Court on Monday, alongside an order to surrender $3.5 million and pay $1.5 million in restitution. His conviction in the massive insurance fraud case occurred in January 2022, following charges of conspiracy to commit bribery and conspiracy to defraud tax authorities to which he pled guilty in December.
In his confession, the man from Closter, New Jersey, admitted that he spearheaded the scam, amounting to an astounding $60 million. Other indictees included licensed physicians, an attorney, and an officer of the NYPD.
Exploiting Automobile Insurance Laws
Between 2008 and 2021, Pierre, among others, managed several pseudo-medical clinics in New York, such as Veda Medical, Sky Medical, Sun Medical, and Rutland Medical. These clinics falsely posed as being under the operation of licensed doctors, according to the federal authorities.
The fraudsters found loopholes in the laws of New York and New Jersey that require insurance companies to cover claims for certain types of auto accidents — notably by paying providers directly rather than billing the victims. This approach saved the insurers from possible lengthy legal disputes, court filings revealed.
The Fake Clinic Operation
Pierre knew that these clinics couldn’t file claims to insurance companies if their operations were found to be under non-doctors. To circumvent this, he manipulated doctors to perjure their ownership claims. Over the course of the scheme, he admitted to siphoning more than $20 million either to his own bank accounts or directly from the clinics’ coffers.
Moreover, he squeezed millions more from insurance companies by steering prescriptions towards specific pharmacies or directing patients to his wife’s law firm for litigation purposes. On top of the legal fees, Pierre also steered patients towards an MRI facility, where he had substantial influence.
Largest Scam of its Kind
Such was the audacity of the scam, Pierre and his accomplices turned to bribing hospital employees, 911 dispatchers, and others to obtain confidential information about car accident victims. This move was designed to pull in more clients to their clinics and MRI facility.
Manhattan U.S. Attorney Damian Williams underscored the gravity of the case in a statement, pointing out that Pierre’s crimes were the culmination of the largest no-fault auto insurance scam in New York City history.
He further condemned Pierre for exploiting the system through bribery and manipulation while depriving accident victims of their rightful care. Despite attempts to reach Pierre and his attorney, no comments were provided.