Fraudster gets 10 years for massive no-fault auto coverage scheme
The scam fraudulently pulled in $60 million from auto insurance carriers.
The mastermind behind one of New York’s largest no-fault auto insurance fraud ring was sentenced to 10 years in prison for conspiracy to commit bribery and conspiracy to defraud the IRS, according to the U.S. Attorney’s Office, Southern District of New York, which noted the organization took in $60 million from insurance carriers.
Bradley Pierre, the person at the center of the fraud scheme, was also ordered to pay a money judgment of $3.5 million and restitution of $1.5 million. He will face three years of supervised release after serving his prison sentence.
The scheme involved the fraudulent ownership and control of medical professional corporations, including medical clinics and an MRI facility, which billed automobile insurance companies for false medical treatments under New York’s no-fault law.
Multiple indictments named Pierre’s brother, Jean Pierre, and accountant, Albert Haft, and Marvin Moy, M.D. as defendants in the scheme. About 10 months after being charged, Moy mysteriously disappeared in a boating accident, and his body has not been found.
“Bradley Pierre’s deceitful orchestration of a $60 million fraud — the largest in New York’s history — targeting no-fault automobile insurance companies exemplifies a blatant disregard for justice and fairness,” Damian Williams, the U.S. Attorney for the Southern District of New York,” said in a release. “Through bribery and manipulation, Pierre callously exploited the system, denying accident victims the rightful care they deserved.”
The indictments allege that Pierre, who was not a licensed medical professional, recruited medical practitioners to establish medical professional corporations between 2008-2021. In New York, a medical professional corporation must be owned, operated, and controlled by a licensed medical practitioner to qualify for reimbursement under the no-fault law, established nearly 20 years ago by the New York Court of Appeals.
While these appeared as legitimate practices owned by licensed professionals, Pierre was the true owner and received most of the profits. He allegedly required these practices to refer patients to a network of pharmacies, attorneys and specialists, who paid him millions for illegal referrals.
Many patients were also directed to an MRI facility secretly owned by Pierre.
To sustain the scheme, Pierre needed a steady flow of patients and partnered with a paralegal and manager at a personal injury law firm. They had a quid pro quo arrangement where the paralegal referred clients to Pierre’s practices and Pierre directed patients to the law firm for legal services.
Pierre also paid hundreds of thousands to “runners,” who bribed 911 operators and hospital staff for confidential accident information. These runners contacted accident victims, steering them to Pierre’s practices and the law firm.
To secure profits, Pierre funneled insurance proceeds to shell companies — JAP Multi Services Inc. and Tort Cash LLC — managed by his brother, Jean Pierre. These payments, disguised as business expenses, were actually used to pay bribes and profit from the scheme.
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