By:Hector Flores
Babeck reportedly billed patients for dental work he did not do and was charged with enterprise corruption, for which he faces up to 25 years in prison. Marcus was charged with commercial bribery, and may face four years in jail. He reportedly paid a claims arbitration adjuster $60,000 between 2002 and 2003 to approve claims that were formerly denied.
The case also involved a reputed Bonanno crime family associate, five attorneys, three medical doctors, a psychologist, a chiropractor, a physical therapist, an acupuncturist, an insurance company claims manager and fake patients. The 43 were charged with stealing millions of dollars from insurance companies by using a medical clinic as a "fraud factory."
According to Queens District Attorney Richard Brown, who held a news conference last week at the Queens District Court House in Kew Gardens to announce the charges, the medical clinic, at 107-13 Jamaica Ave. in Richmond Hill, was used to stage fake automobile accidents, submit false claims and medical reports and provide unnecessary treatment to individuals with feigned injuries.
In addition, three defendants have been charged with money laundering and are accused of concealing $1 million by cashing insurance company checks at a Manhattan check-cashing outlet.
Brown said, "The defendants have been charged with operating a medical clinic in Richmond Hill, Queens, as a corrupt criminal enterprise for the sole purpose of ripping off insurance carriers."
Brown added that all of the alleged medical claims written in the clinic were fake, its accident victims shams, its lawyers and medical professionals crooked, and the entire operation protected by the Bonanno crime family.
"This case sends a message to those who attempt to rip off the system that law enforcement's fight against insurance fraud is ongoing," he said. "Those who cheat will be sought out and vigorously prosecuted."
State Superintendent of Insurance Gregory Serio explained that no-fault system fraud can translate into higher auto rates for honest New Yorkers. "The Insurance Department has been aggressively fighting no-fault fraud with the Queens District Attorney, New York City Police Department, the Department of Tax and Finance, and the Banking Department as a key component in Governor Pataki's strategy to stabilize the auto insurance market," Serio said. "These arrests are indicative of the collaborative work that successfully takes fraudsters off the streets to protect New York's auto insurance consumers."
It is estimated that auto insurance fraud costs New Yorkers $1 billion each year, nearly $200 per driver. It is also the reason why an insurance policy for a New York driver costs an average of $2,000, the second-highest rate in the nation.
The defendants have been variously charged with enterprise corruption, insurance fraud, forgery, falsifying business records, money laundering, commercial bribery and conspiracy, as well as violations of New York state tax law. Some face up to 25 years in prison if convicted.
According to the complaint, Joseph Fratta, a member of the Bonanno crime family, allegedly supervised and managed part of the ring's business and received a salary from the Richmond Hill clinic, where he had an office.
The clinic's owner, Arthur Bogaraz, and two of its managers, Irena Chernomaz and Pasqual "Richie" Clemente, allegedly assisted Fratta in carrying out various schemes.
Also charged is Matthew Averko, a claims arbitration adjuster employed by the Robert Plan Insurance Company in Bethpage. He allegedly received cash payments of up to $60,000 from the clinic through a third manager, Marcus, between 2002 and 2003 in exchange for approving claims that his employer had denied.
It is also alleged that Fratta and Bogaraz laundered money with the help of two other defendants, Rocio Duran and Denian Duran. Fratta and Bogaraz reportedly gave the Durans over $1 million worth of checks from various insurance carriers, which were then used to pay the clinic's doctors and other medical staff.
The fraud ring also paid runners $2,700 for each person recruited to pose as an accident victim, and each fake patient received $2,000. In order to collect the money, the fake patients had to visit doctors, a chiropractor, an acupuncturist and a physical therapist. In addition, the fake patients had to sign up with an attorney connected with the scheme and receive unnecessary MRIs, X-rays, nerve condition studies and medical supplies.
Fratta and Bogaraz are also charged with income tax evasion for underreporting their medical clinic earnings.
The multiple indictments are the result of a 14-month undercover investigation that began in January 2003 and was conducted jointly by the New York Police Department's Auto Crime Division, the New York State Insurance Department's Insurance Fraud Bureau, the New York State Department of Taxation and Finance's Tax Enforcement Office, the New York State Banking Department's Criminal Investigations Bureau, and the Queens County District Attorney's Organized Crime and Rackets Bureau.
