Melville Lawyer Charged in "Medical Fraud Mill”

A Melville attorney is one of three-dozen people charged with scheming to defraud auto insurers out of more than $279 million in accident benefits, according to published reports.

In a press conference Tuesday, Federal and New York City investigators told reporters that the 35 defendants including lawyers, doctors and patients who took part in a “medical fraud mill” to fake injuries.

Matthew Conroy, 42, of Melville is one of three lawyers facing charges. He is charged with conspiracy to commit health care fraud, mail fraud, money laundering and racketeering. If convicted, Conroy and the 35 other defendants face a maximum of 30 to 70 years in prison.

According to a Reuters report, doctors were paid off to prescribe unnecessary procedures or treatments including neck and back braces, MRIs and physical therapy sessions. Lawyers involved are said to have filed bogus personal injury lawsuits and received payouts to coach patients on how to fake injuries.

The defendants allegedly sought to take advantage of New York’s “no-fault” auto insurance law, which allows drivers and passengers to obtain up to $50,000 for accident injuries, regardless of fault.

New York City Police Commissioner Raymond Kelly told reporters at the press conference that two undercover cops posed as patients and were prescribed bogus treatments, which helped expose the scheme.

Reuters reported that authorities are citing the criminal case as the largest involving no-fault auto insurance fraud, and the first of its kind to allege violations of the federal Racketeer Influenced and Corrupt Organizations Act (RICO), a law often used to fight organized crime.

Police estimate that $113 million was lost in the scheme.