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New York Cracking Down on No-Fault Auto Insurance Scams

Posted on 14 Mar 2012

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Governor Andrew Cuomo, Attorney General Eric Schneiderman and Preet Bharara, the United States Attorney for the Southern District of New York, took major steps recently to combat no-fault auto insurance fraud. No-fault is auto insurance coverage that pays for each driver’s own injuries, regardless of who caused the accident.

The Cuomo administration stated last week that New York’s Department of Financial Services (DFS) was issuing a new regulation enabling DFS to ban doctors who engage in fraudulent and deceptive practices from participating in the no-fault system while at the same time demanding information from 135 medical providers whose billing practices have raised concerns regarding possible no-fault fraud.

Meanwhile, Attorney General Schneiderman announced the arrests of 16 people who were alleged to have participated in a staged accident scheme and U.S. Attorney Bharara released the details of no-fault fraud charges filed against 36 individuals.