Hewlett man convicted in auto fraud

ikhail Zemlyansky, 37, of Hewlett, was convicted on March 19 of racketeering conspiracy and securities fraud charges in what has been called the largest no fault auto insurance fraud ever.

Zemlyansky, who is known by the nickname “Russian Mike” was part of a 36-person ring that sought to defraud insurers out of more than $279 million in accident benefits. He was indicted in March 2012 and is considered the person who coordinated the scheme that included 10 doctors and three lawyers. Zemlyansky was the 34th person convicted in ths case.

"Mikhail Zemlyansky now stands convicted of spoearheading three fraud scheme: one in which the defendant and co-conspirators billed insurance companies for over $100 million in fraudulent medical treatments, and two that swindled investors out of over $18 milliom," U.S. Attorney Preet Bharara said in prepared statement. "Worse yet, Zemlyansky lundered the fruits of his crimes through check-cashing entities and shell companies, and invested his crminal proceeds on luxuary items."

Two New York City police officers posed as accident victims and helped to uncover the scheme that authorities said began in 2007, and had collected an estimated $113 million nearly five years later.

The ring sought to exploit the no-fault insurance system that guarantees every accident victim up to $50,000 in medical benefits. Money was paid to establish bogus bank accounts and prescribe unneeded procedures or treatments, and patients were coached to fake injuries, officials said.

Following the Thursday verdict, Zemlyansky, a native of Ukraine, was detained by authorities. His prison sentence could exceed 100 years, officials said.