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Saturday, October 4, 2008

Law Firm Admits Role In Staged Accident Scheme

United States Attorney Richard B. Roper - Northern District of Texas
FOR IMMEDIATE RELEASE
SEPTEMBER 30, 2008 - WWW.USDOJ.GOV/USAO/TXN
MEDIA INQUIRIES: KATHY COLVIN -PHONE: (214) 659-8600 - FAX: (214) 767-2898

LAW FIRM ADMITS ROLE IN STAGED ACCIDENT SCHEME

DALLAS - Trey Allen, P.C., a professional corporation, which was previously known as the Law Office of John H. Allen, III, P.C., pled guilty today in federal court before U.S. Magistrate Judge Paul D. Stickney, to an information charging conspiracy to commit mail fraud and health care fraud in connection with the firm's involvement in defrauding insurance companies and clients, and receiving kickbacks, as part of a staged accident scheme, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Sentencing is set for January 7, 2009, before U.S. District Judge Jorge A. Solis. As part of the agreement with the government, the firm agrees to pay restitution in the total amount of $840,000 and serve a five-year term of probation. Restitution is due and payable immediately, however, according to the agreement, the U.S. is aware that Trey Allen, P.C. has a limited ability to satisfy the entire amount of restitution. Therefore, a payment of $50,000 was made when this plea agreement was executed. A second installment of $150,000 will be paid at the time of sentencing. Payment of the $640,000 balance will be made in equal monthly installments during the term of probation and will be a condition of probation. John H. Allen, III has personally agreed to guarantee payment of the final portion of restitution.

Trey Allen, P.C.'s clients included clients claiming to have suffered personal injuries resulting from motor vehicle accidents (accident clients). Trey Allen, P.C. processed personal injury cases by filing claims with insurance companies for physical injuries and medical expenses, including those for chiropractic treatment, incurred by the accident clients. Sometime prior to 2000, and continuing through February 2007, Trey Allen, P.C. hired legal assistants to coordinate soliciting personal injury clients and recruiting chiropractors, and direct the filing of personal injury claims against insurance companies. According to the factual resume, two of Trey Allen P.C.'s legal assistants have pled guilty to criminal violations related to their activities as legal assistants of the Trey Allen, P.C. law firm. Defendant "Tommy" Tung Tran pled guilty in February 2008 to one count of conspiracy to commit mail fraud and health care fraud. He admitted he processed insurance claims on automobile accident claims that arose from accidents he knew were "staged." His sentencing date has not yet been set. According to the Trey Allen, P.C. factual resume, both legal assistants informed the government that they did not disclose their fraudulent activities to the officers of Trey Allen, P.C.

They admitted, however, they had an arrangement with numerous chiropractors in the Dallas/Fort Worth (DFW) area in which they would refer business to the chiropractors and, in return, the chiropractors would pay the legal assistants a cash kickback out of the settlement proceeds. The cash kickback was 30% - 40% of the amount paid to the coconspirator chiropractors by Trey Allen, P.C., which resulted in inflated medical bills being presented to the insurance companies. The legal assistants referred accident clients to the coconspirator chiropractors for treatments from injuries resulting from automobile accidents. Trey Allen, P.C. would submit the chiropractic treatment records to insurance companies, would receive insurance settlement proceeds in return, and would distribute the settlement proceeds among the interested parties, including the coconspirator chiropractors. The coconspirator chiropractors, upon receiving insurance settlement funds from the firm, then paid a cash kickback to the legal assistants. The funds received by the legal assistants, as a result of the kickback scheme, were in actuality, a reduction of the coconspirator chiropractor fees, which rightfully belonged to the accident clients. The kickback scheme run by the Trey Allen P.C. legal assistants could not have been successful without using the Trey Allen, P.C. law firm, and the Trey Allen, P.C. law firm directly benefitted from the illegal kickback arrangement as it received one-third of every case settlement brought to the firm by its legal assistants.

While Tommy Tung Tran was charged in a separate information, 22 defendants were charged in a 71-count indictment in May 2007 that brought to light the massive staged accident scheme that had been operating in the DFW area for approximately seven years. The ringleader and lead defendant in that case, Tuan (Andy) Nguyen, 32, pled guilty in October 2007 to one count of conspiracy to commit mail fraud and health care fraud and one count of conspiracy to launder money. Nguyen admitted that he orchestrated the conspiracy and conspired with others to defraud numerous insurance companies by staging multiple motor vehicle accident schemes throughout the DFW metroplex that resulted in actual losses to victim insurance companies of more than $1 million. He faces a maximum statutory sentence of 40 years in prison, a $500,000 fine and restitution. Nguyen has been in custody since late May 2007; a sentencing date has not been set. In total, there have been 27 total convictions, 22 to the main indictment and five to informations. Eleven defendants have been sentenced to date. U.S. Attorney Roper praised the investigative efforts of the Internal Revenue Service - Criminal Investigation, the FBI and the U.S. Postal Inspection Service. Assistant U.S. Attorney Chris Stokes is prosecuting the cases.

6 comments:

GREAT JOB said...

WOW, GREAT JOB GETTING THESE BUMS.. WHAT AN AMAZING STORY...THIS STORY REMINDS ME OF THE LAW FIRM OF NAPOLI & BURNS...I HEARD THE FATHER WENT TO JAIL FOR PULLING SIMILAR INSURANCE SCAMS.

tv viewer said...

Odd how the TV show Law and Order depicts the front of a court (NYC) that totally lacks any sense of law and order. It appears this is a national problem... but we'll keep watching Law and Order, believing in fiction despite the reality of court corruption before us.

Anonymous said...

This is professional courtesy. Is the scum going to continue to practice law (with or without a license),or how is he going to pay it back? The scum will need no jail time so he can work to pay restitution? Hey suckers believing in our system, there could be no jail time and hardly any restitution, because the scum will be back to ask for mercy from his fellow shark in black.

Anonymous said...

To the above writer..you're absolutely right..Hurry up and call your buddies to put the fix in.

Anonymous said...

This scam was real big in upstate NY in the 70's..all the same MO, except replace chiropractors with doctors!
This is not to say that this still does not happen on a smaller level today!
The opportunity for it to continue always exists!
I absolutely believe that it may be more sophisticated now, because the judiciary is so blatant and unaccountable for their massive corruption, that all participants are covering their butts...just in case the judicial corruption gets addressed on a real hardline level!
We the taxpayer can only pressure, for that to happen!

Anonymous said...

In 1999, the 'Largest Bankruptcy case' in the history of Western Tennessee Bankruptcy Court in Memphis, Tennessee was filed. (Not Nashville, where HCA is located)

In 2000, in Dublin Ohio, FBI raided offices of the largest private financial lender to 'failing healthcare companies'.

NCFE, National Century Financial Enterprises, Inc., the 'LARGEST' private financial lender to 'failing healthcare companies'. Federal Prosecutors in Ohio state, this case is the one that "no one has heard of ". I wonder why?

Federal Prosecutors in Columbus, Ohio proclaim this case is 'larger than Enron' and still 'no one has heard of' or is paying attention.

Currently, there are two people that have yet to go on trial in the NCFE, 'larger than Enron' case: the CEO, scheduled this coming week October 6, 2008; but most interesting is the last, ex-Executive, James K Happ. Why last? The ex-executive will go last, after everyone else involved has been sentenced, one of which has already completed her sentence and is now free.

This ex-executive, James K Happ, was a prior employee of Richard Rainwater, the notorious oilman.

And we want to place the financial crisis to 'low-income housing'?


Trust must be earned and Truth must be told for any bailout or rescue plan to work in any capacity intended.

"re-regulate the industry along the lines of Glass-Steagall" but what happened shortly after this de-regulation? We need to get to the root of this problem! And this is a start.

It is a leap of faith that any one citizen must have in their government. However, due to the escalation of the 'Newt Gingrich' style of politics, which has dummied down the nation by dividing, will be the demise of our country.

We cannot trust the government to tell us the truth. This is the reason we will not get out of this easily; because we cannot understand how we got here. We export financial services. That is what American exports and the American people cannot understand that.

Thus, it is hard to listen, especially when we are so uninformed and uneducated. Our country has become a financial service export leader; that is what our economy and ultimately, our country has transformed into. We must begin to understand the true 'value' of one's country's currency. We need to get back to the basics.

If we are to believe the fact that this is a 'sub-prime' mortgage-related Securities then we will never get to the root of the real truth.

Bailout Begins With Healthcare in America

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See Video of Senator John L. Sampson's 1st Hearing on Court 'Ethics' Corruption

The first hearing, held in Albany on June 8, 2009 hearing is on two videos:


               Video of 1st Hearing on Court 'Ethics' Corruption
               The June 8, 2009 hearing is on two videos:
         
               CLICK HERE TO SEE Part 1
               CLICK HERE TO SEE Part 2