HOUSTON (CN) - A Texas chiropractor faces up to 30 years in federal prison after pleading guilty to taking kickbacks in a $3 million auto insurance fraud.
Chase Lindsey, 34, co-owner of Lindsey Chiropractic Care in Bryan, Texas, pleaded guilty to conspiracy charges Tuesday, the Justice Department announced.
"He admitted he participated in a two-year conspiracy to defraud numerous auto insurance companies by allowing fraudulent chiropractic bills to be created under his name for treatments which were never performed and used as support for fraudulent settlement demand letters sent to auto insurance companies," prosecutors said in a statement.
The fraud started in 2007 when Lindsey entered into an agreement with Earlie Dickerson, office manager of the Sanjoh & Associates Law Firm in Bryan, which represented clients allegedly injured in car wrecks, according to Lindsey's plea.
"Lindsey agreed to provide medical evaluations of, and recommend treatment for, those patients in exchange for $2,000 in cash per month, which totaled approximately $58,000 during the course of the conspiracy," prosecutors said.
The Southern District of Texas has also indicted Dickerson over the scheme, along with Lindsey's chiropractic clinic co-owners Marion Young, Edward Graham and Brittany Jessie.
Lindsey kept the scheme going from 2007 until 2009 despite changing the name and location of his chiropractic clinic four times during those years, prosecutors said. "Lindsey routinely prescribed medically unnecessary treatment which was provided, if at all, by unlicensed, untrained and unqualified individuals," prosecutors said.
"Lindsey knew that most of the treatments were not being performed.
"Nonetheless, Lindsey allowed false and fraudulent chiropractic bills to be created under his name from each of the four clinics for treatments which were never performed."
Dickerson sent clients to Lindsey's Bryan clinic until search warrants were served there in November 2009.
"Lindsey acknowledged the scheme to defraud the automobile insurance companies resulted in the submission of more than $3 million in false billing claims," prosecutors said. "The insurance companies paid at least $1.2 million in false claims during 2007-2009."
He faces up to 30 years in prison and a $1 million fine at his April 22 sentencing.
Lindsey will also pay $1.2 million in restitution to the insurance companies he defrauded. He is free on a $75,000 bond.
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