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A Tale of 2 Chiropractors Faced with a Moral Decision About PIP Fraud

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by: DrTirpak posted: November 08, 2012

Jennifer Adams DC, pleaded guilty to mail fraud

This is a tale of 2 chiropractors practicing in Florida and the consequences of their actions. Both Chiropractors were approached with similar scenarios: A non-doctor asked them to register a chiropractic clinic in their name with the intention of  circumventing Florida law to treat personal injury patients. A clinic can obtain a certification of exemption if it is owned by a physician, some facilities have had an illegal “straw” physician registered as the owner to circumvent the rigorous certification process.

Chiropractor Dr. Lisa Adams agreed to put her name on corporate documents of Ovy Rehabilitation Medical Center Inc in West Palm Beach Florida and Chiropractic Office of South Florida LLC in Palm Springs Florida. Dr. Adams’s ownership was in name only. She received a paycheck from the corporations, but had no control of the finances or business dealings.

According to court documents Dr. Adams a 1998 Life University graduate, stated she was not aware of the staged accidents that were the source of her patients initially.  The scheme perpetuated by the true owners involved paying individuals to stage accidents, then report to the clinics with a list of symptoms that they were coached to provide. Various accusation were made in court documents including: having patients sign bills for numerous dates of service when treatment was not rendered, upcoding exams and billing for more services than provided.

A joint task force from the State of Florida, the FBI and the IRS arrested 10 other individuals including the clinic owners from Palm Beach County along with Dr. Adams in June. This week in Federal Court Chiropractic Physician Jennifer Adams pled guilty to one count of conspiracy to commit mail fraud.

Dr. Adams  did profess in the court records that she was aware of the fraud, but not at first. As a result she may be required to pay restitution of up to $250,000 to the court and 1.9 million to the 10 insurance companies that she defrauded. 1.9 million is the amount billed under her name after she was aware of the fraud.

Dr. Jennifer Adams will be sentenced in the future in federal court. She faces a maximum term of 20 years in prison, to be followed by a term of supervised release of not more than three years.

The second Chiropractor’s name in this story has not been release so let’s call him Dr. B Dr. B contacted authorities right after he was approached with the same situation in Sarasota Florida. For  months he aided the Florida Department of Financial Services’ Division of Insurance Fraud by applying for a clinic exemption for Garden Relief Center, LLC on the behalf of Nerber A. Iglesias. 

The clinic submitted almost $40,000 in fraudulent insurance claims to 6 separate insurance companies. Also while working under the direction of law enforcement Dr. B was approached by Michael Borkowski, owner of a local collision repair shop, to provide patients for a fee. Both men were arrested last week and charged with personal injury protection fraud.

What is the moral of the story? Know the laws in the state where you practice, it is your responsibility. If someone approaches you with a business proposal make sure it is legal, don’t hesitate to contact an attorney. Most states require chiropractor to report illegal activity, so do it.

As a physician you have an ethical and legal obligation for the services/care that you provide. Dr. B is left looking for a new job and Dr. Jennifer Adams is looking at prison. Not just prison, but  restitution for possibly millions of dollars for funds that she never controlled.

Filed Under Tags:  Chiropractic Students  ·  Chiropractors  ·  Florida

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