DALLAS (CN) – A federal judge has fined a Dallas law firm $840,000 for taking part in a staged accident scheme to defraud insurance companies. The Trey Allen law firm was also put on probation for 5 years. The U.S. Attorney’s Office said the firm’s lawyers did not know the legal assistants were committing fraud, but benefited from the increased income.
A Trey Allen legal assistant, “Tommy” Tung Tran, earlier had pleaded guilty to conspiring to commit mail fraud and health care fraud. The U.S. Attorney’s Office said Tran admitted he processed insurance claims on auto accidents he knew were “staged” in a scheme to defraud insurance companies.
Authorities believe the scheme operated in the Dallas-Fort Worth area for seven years and bilked insurers for $1 million.
Tran admitted referring clients of Trey Allen that had suffered injuries in auto accidents to co-conspiring chiropractors, which submitted fraudulent treatment records and inflated medical bills to insurers. Tran and another legal assistant then took kickbacks of 30% to 40% from the insurance settlements, prosecutors said.
Both legal assistants told prosecutors that attorneys at Trey Allen had no knowledge of their fraudulent activities, but the firm did benefit from the scheme through increased revenue.