A Toronto-based staged collision ring has been slapped with more than $800,000 in fines and restitution for false insurance claims that contributed to more than $4 million in fraudulent claims.
The co-operative investigation involving the Financial Services Commission of Ontario (FSCO), Toronto Police Services,
Insurance Bureau of Canada and several member insurers, have resulted in fines totaling $200,000 and an additional restitution order of $609,000 have been levied against 1697319 Ontario Limited operated as Ontario Rehab Centre (3031 Markham Road, Suite 31, Toronto, Ont.).
“These are fraudulent acts that jeopardize the integrity of our health care system, drive up premiums, take valuable time from emergency services, tie up the courts and cost everyone,” said Rick Dubin, vice-president, Investigative Services, Insurance Bureau of Canada. “Criminals need to be brought to justice. The cooperation between police, IBC investigators, individual insurance companies and FSCO helped make this possible.”
Earlier this year, individuals and other clinics were convicted under similar charges. (See '
Rehab clinics fined maximum.')
In this instance, 1697319 Ontario Limited operated as Ontario Rehab Centre was charged by FSCO with one count each of:
- Knowingly making a false or misleading statement to an auto insurer to obtain payment for goods and services provided to an insured; and
- Engaging in unfair or deceptive acts or practices.
“Insurance crime is big business that siphons dollars away from our health care system, emergency services, courts and insurers,” said Dubin. “They cheat and we all pay. Having the court take these crimes seriously by imposing hefty fines and restitution sends an important message.”
Each conviction resulted in the maximum fine of $100,000. (continued.)
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Justice of the Peace Mark Conacher referred to the significant cost to all of the public who drive and have to maintain insurance. He commented that he thought what was “particularly egregious” was the corporation’s use of the names and credentials of practitioners long after they had left the company, due to the potential to sully the reputation of the health care providers.
He went on to say that in a case like this it was important to provide a deterrent; and remarked that, “This is clearly a case that calls for the strongest sentence possible.”
Is this enough to stem the millions in auto insurance fraud? You tell us and leave a comment below.
