Massive Slip-And-Fall Scheme Alleged In New York

Five men have been charged in what federal prosecutors in Manhattan say was a massive litigation fraud that involved doctors, lawyers and litigation finance companies. Hundreds of lawsuits may be at issue. However, no lawyers, doctors or individuals from the litigation finance firms were among those charged, and it’s possible, according to this account in the New York Times, that they were unwitting participants in what amounts to “a sort of insurance fraud on steroids.” Plaintiffs, willing to fake a fall and injury, are alleged to have been recruited and sometimes provided with unnecessary treatment in order to increase the value of the lawsuits. Medical and legal bills are alleged to have been paid with high interest loans provided by the litigation finance firms. The principal defendant, charged with conspiracy, mail fraud and wire fraud, is a 70-year-old former chiropractor who lost his license several years ago following a misdemeanor larceny conviction. He is alleged to have recruited other defendants who would scout out plaintiffs and help get them to doctors.