FOR IMMEDIATE RELEASE
Thursday, October 15, 2009
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FORMER BOSTON MAN SENTENCED TO 10 YEARS IN PRISON FOR STAGING AUTO ACCIDENTS AND OPERATING FRAUDULENT PHYSICAL THERAPY CLINICS
BOSTON, MA - A former Boston man was sentenced today in federal court, after pleading to a 54-count Indictment, charging him with a mail fraud scheme that involved staging auto accidents and operating fraudulent physical therapy clinics and medical billing offices in several Massachusetts cities and towns.
Acting United States Attorney Michael K. Loucks, Robert Malaby, Acting Inspector In Charge of the United States Postal Inspection Service, Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau and Keith Carlough, Director of Operations of the National Insurance Crime Bureau-Area 9, announced today that TU QUY MAI, age 59, of N. Charleston, South Carolina, formerly of Dorchester Avenue in Boston, was sentenced by U.S. District Judge Richard G. Stearns to 121 months in prison, to be followed by 3 years of supervised release. He was also ordered to pay $3,758,588 in restitution and a $5,400 special assessment. TU QUY MAI pled guilty on December 10, 2008.
At the earlier plea hearing, the prosecutor told the Court that had the case proceeded to trial the Government’s evidence would have proven that from 2000 through 2006, TU QUY MAI engaged in a scheme to defraud insurance companies by means of staged auto accidents and false and fraudulent medical and physical therapy billing claims. TU QUY MAI established and operated clinics in various locations in Massachusetts, including Worcester, Quincy, Brockton, West Roxbury and at least five different locations in Dorchester. In addition to paying people to stage auto accidents, TU QUY MAI paid others to pretend to have been in auto accidents, whether real or staged, in order to seek treatment at TU QUY MAI’s clinics, for which he submitted claims to insurance companies. TU QUY MAI also routinely caused physical therapists and physical therapist assistants who worked for him to prepare false records, including evaluation reports and notes of alleged treatments, when no actual evaluation or treatment had been performed. In order to avoid detection by insurance companies, TU QUY MAI routinely changed the name of his clinics and billing companies and caused others to hold themselves out as the owners. Insurance companies paid more than $4 million in claims submitted by TU QUY MAI’s clinics and billing companies.
Acting United States Attorney Michael K. Loucks said, “Not only does insurance fraud cost the industry millions of dollars, it is an affront to all of the legitimately injured individuals for whom claims are filed. We will vigorously prosecute these cases, and I believe that the Court’s decision to sentence Tu Quy Mai to 10 years in prison will send a strong deterrent message that such crimes do not pay, and punishment will be severe.”
Acting Inspector in Charge of the U.S. Postal Inspection Service Robert Malaby said, “Postal inspectors continue to aggressively investigate all instances where the US mails are used to commit fraud against consumers, such as insurance fraud. Violations of the Mail fraud Statute are taken seriously by postal inspectors, and those who commit such frauds via the mail can expect to face stiff jail sentences.”
Anthony DiPaolo, Chief of Investigations of the Massachusetts Insurance Fraud Bureau said, “This lengthy sentence is the result of committed efforts by several agencies on a very complicated case. This sends a clear message that committing insurance fraud has serious consequences. The Insurance Fraud Bureau continues to aggressively pursue this type of insurance fraud.”
“This is an excellent example of agencies working together against the organized activities of those preying on the insurance industry and in the end the consumer. We would like to thank all involved for their extensive efforts on this case,” said Keith Carlough, Director of Operations for the National Insurance Crime Bureau-Area 9.
The case was investigated by the United States Postal Inspection Service, the Massachusetts Insurance Fraud Bureau and the National Insurance Crime Bureau. It was prosecuted by Assistant U.S. Attorneys Mark J. Balthazard of Loucks’ Economic Crimes Unit and Gregg D. Shapiro of Loucks’ Civil Division.
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