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Insurance Companies Prevail in $40 Million Dollar Case in Landmark Decision - Richmond Civil Court - A jury found that a radiology practice which generated over 38,000 MRIs in under two years was fraudulently owned and controlled by a tandem of two non-doctors who ran away with millions of dollars
Insurance Companies Prevail in $40 Million Dollar Case in Landmark Decision

 

PRZOOM - /newswire/ - New York, NY, United States, 2008/08/25 - Richmond Civil Court - A jury found that a radiology practice which generated over 38,000 MRIs in under two years was fraudulently owned and controlled by a tandem of two non-doctors who ran away with millions of dollars.

   
 
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Judge Peter Sweeney presided over the trial.
Led by Craig J. Freiberg, Esq. of Freiberg & Peck, LLP in New York, NY, the case is the first of its kind in New York to go to verdict on the issue of ownership and control of a medical practice by non-doctors. The verdict was unanimous.

The trial centered on Andrew Carothers, MD, PC, whose lawyers claimed was truly owned by radiologist Andrew Carothers, MD of Englewood, NJ. The medical practice had three MRI facilities, with half of the MRI machines on the backs of trucks.

Said lead counsel Freiberg: “It is imperative that medical facilities actually be owned by Doctors who have the patients best interests at heart. Rather than non-Doctor businesspeople who have the interests of their wallets first and foremost.”

But the real focus was the total operation and control over the medical practice by two non-doctors, who walked away with all of the $11 Million paid by the insurance companies for supposed medical services.

This included millions of dollars that was supposed to go for medical claims but instead was spent by the non-doctors on several high-end cars (BMW, Lexus, Infiniti), shopping sprees at Saks Fifth Avenue, Macy’s, Nordstrom’s and even to pay for their own million dollar homes, swimming pools and credit cards.

Serving as co-lead counsel with Craig Freiberg of Freiberg & Peck, LLP were John E. McCormack of John E. McCormack, P.C., Barry I. Levy of Rivkin Radler LLP, and Vincent Gerbino of Bruno Gerbino & Soriano, LLP.

Smith Valliere & Martinez PLLC and Marvin Ben-Aron, represented the plaintiff.

 
 
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Insurance Companies Prevail in $40 Million Dollar Case in Landmark Decision

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