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Press Release

Former Employee Of Injury Rehab Specialist And Others Charged In A Conspiracy To Commit Health Care Fraud

For Immediate Release
U.S. Attorney's Office, Western District of Kentucky

Scheme included staging an accident to receive pain medications

LOUISVILLE, Ky. – Acting United States Attorney John E. Kuhn, Jr. today announced the indictment and arrest of three Louisville co-conspirators charged with a single count of health care fraud.

Cynthia Allen, age 27, Terry Cotton, age 36, and Terry Jenkins, age 36, are charged with conspiring with each other to recruit individuals to participate in a November 27, 2012, staged automobile accident, where one vehicle intentionally struck another vehicle. The object and purpose of the conspiracy was to obtain money and property under the custody and control of health care benefit programs, and to receive controlled substances.

In furtherance of the conspiracy, Allen directed staged, accident passenger participants to seek chiropractic treatment at the clinic at which she was employed. Allen and Cotton then directed passenger participants to seek pain management treatment, including receiving pain medication, at Injury Rehab Specialists of Lou., PLLC, where Allen subsequently became employed.  As a result of these acts, among others, automobile insurance companies were billed for and paid for unnecessary treatment at the chiropractic clinic, Injury Rehab Specialists of Lou., PLLC, and other medical providers.      

Further, Jenkins is charged with health care fraud for fraudulently submitting a settlement demand for $14,882.29 to Safe Auto Insurance Company for alleged injuries he sustained in a staged automobile accident, and receiving a settlement of $11,000.00.

Further, Terry Cotton is charged with unlawful distribution of a controlled substance. According to the indictment, between June 20, 2012, and continuing through January 17, 2014, Cotton and others, conspired with each other to knowingly and intentionally distribute and dispense, a mixture and substance containing a detectable amount of Hydrocodone, a schedule III controlled substance.

If convicted at trial, the defendants could be sentenced to no more than 20 years in prison, and 3 years of supervised release and fined $500,000.

This case is being prosecuted by Assistant United States Attorneys Joseph Ansari and Lettricea Jefferson-Webb and is being investigated by the Louisville Metro Police Department and the FBI.


The indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.

Updated June 18, 2015