A New Jersey chiropractor pled guilty on Jan. 11, 2013, to fraudulently obtaining more than $650,000 by illegally using “runners” to recruit motor vehicle accident patients to his chiropractic businesses. The defendant also admitted to growing marijuana plants. The announcement came from the NJ Attorney General’s Office.
Scott Greenberg, 53, of Franklin Township, Somerset County, a doctor of chiropractic, pleaded guilty to a criminal accusation charging him with second-degree theft by deception, third-degree conspiracy and third-degree criminal running activity before Superior Court Judge Julie M. Marino in Somerset County. Greenberg also pleaded guilty today to second-degree manufacturing, distributing or dispensing a controlled dangerous substance
Acting Insurance Fraud Prosecutor Ronald Chillemi noted that New Jersey law includes an “anti-running statute,” which imposes criminal penalties for acting as a runner or using, directing, or employing a runner. The statute defines a runner as a person who attempts to procure a patient or client at the direction of and for a health care professional or attorney in exchange for a pecuniary benefit, when the health care professional or attorney intends to assert a claim against an insured person or an insurance carrier for providing services to the patient or client.
A runner is a person who uses publicly available police reports, or other media and then uses that information to recruit people who had recently been involved in car accidents and then solicits them to seek treatment from the chiropractors,”
An investigation by the Office of the Insurance Fraud Prosecutor determined that Greenberg paid the runners a total of approximately $100,000 for the solicitation and referral of approximately 164 patients. Greenberg further admitted that, during that same time period, he illegally obtained a total $655,594 in reimbursement from various insurance companies as result of the illegal “running” scheme.
In pleading guilty to the drug charge, Greenberg admitted that he was growing marijuana plants in his home. When investigators executed a search warrant at Greenberg’s residence on the “runner”-related matter, they found 13 actively growing marijuana plants. Investigators also found marijuana paraphernalia at the same location.
“By paying ‘runners’ to recruit patients to his chiropractic businesses, this defendant greedily chose to care more about his bottom line than he did about motor vehicle accident victims,” Attorney General Chiesa said. “As reflected in today’s guilty plea, such behavior will be prosecuted by my office to the fullest extent of the law.”
Under the plea agreement, the state will recommend that Greenberg be sentenced to eight years in state prison with the sentences for all charges running concurrently. The Office of the Insurance Fraud Prosecutor will request that Greenberg be ordered to pay $655,594 in restitution at the time of sentencing