Feds Uncover $279M NYC Car Insurance Scam

In New York, 36 people were arrested for allegedly cheating auto insurance companies out of a quarter billion dollars in an elaborate scheme run by a Russian gang. The $279-million insurance fraud involved corrupted doctors and lawyers, feigned medical claims and over 100 fake clinics, according to the Federal Bureau of Investigation (FBI).

New York Attorney Preet Bharara addressed the investigation at a new conference, calling the scam "the largest single no-fault automobile insurance fraud ever charged." He explained that although the group claimed $279 million, insurance companies actually netted a loss of $113 million.

The doctors involved in the scheme, mainly of Russian descent, opened more than 100 fake medical clinics across New York, where they provided "treatment" to alleged accident victims. Runners were hired to seek out and recruit potential patients. "The runners were literally ambulance chasers, often finding victims at scenes of accidents, hospitals or word of mouth," said Police Commissioner Raymond Kelly.

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