Psychologist Sentenced in Manhattan Federal Court for Participation in Multi-Year No-Fault Automobile Insurance Fraud Scheme |
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U.S. Attorney's Office
11 August 2014
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAY SEITZ, a psychologist licensed to practice in the State of New York, was sentenced today in Manhattan federal court in connection with his participation in a multi-year, no-fault automobile insurance fraud scheme. SEITZ was sentenced to two years in prison by U.S. District Judge Sidney H. Stein. SEITZ was convicted in March following a six-day jury trial of one count of conspiracy to commit mail fraud and health care fraud, one count of mail fraud, and one count of health care fraud.
Manhattan U.S. Attorney Preet Bharara said: “Jay Seitz violated the ethical code he swore to uphold and committed fraud in pursuit of personal profit. With the sentence meted out today, his unscrupulous practices and flagrant violation of the law have now been justly punished.”
According to the Indictment filed in Manhattan federal court, other court documents, evidence introduced during trial and statements made at other court proceedings:
Between 2006 and 2008, SEITZ purported to provide psychological services to patients at medical clinics located in the Bronx and Brooklyn, New York. SEITZ signed treatment notes that described the diagnoses he purportedly made and the services he purportedly provided to patients treated at these clinics. These treatment notes, which often did not accurately reflect the psychological symptoms suffered by patients or the treatment they were provided, were used to generate claims that were submitted to no-fault insurance companies for reimbursement. These claims reflected that the psychological services for which reimbursement was sought were provided by SEITZ. In fact, SEITZ did not diagnose or treat any patients on whose behalf claims were submitted to no-fault insurance providers. Although the patients at the clinics with which SEITZ was associated sometimes received psychological screening and treatment, this treatment was provided by individuals who were not licensed psychologists or licensed social workers. In addition, the treatment duration and number of treatment sessions reflected on the claims forms often exceeded the actual duration of services provided or the number of sessions at which treatment was actually provided. No-fault insurance providers reimbursed over $3 million of claims submitted on behalf of two professional corporations associated with SEITZ, for patients purportedly, but not actually, treated by SEITZ.
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In addition to the prison term, SEITZ, 62, of New York, New York, was sentenced to one year of supervised release. SEITZ was also ordered to pay restitution in the amount of $2,703,137.89 and forfeit $584,089.92 in assets.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Brian Blais and Kristy Greenberg are in charge of the prosecution.