Deirdre M. Daly, U.S. attorney for the District of Connecticut, announced two chiropractors convicted of charges stemming from an investigation into health care and insurance fraud were sentenced recently by U.S. District Judge Stefan R. Underhill in Bridgeport.
Jennifer Lynne, 41, of Milford, was sentenced to three years’ probation, the first six months of which she must serve in home confinement with electronic monitoring. George U. DeCarvalho, 57, of Stamford, was sentenced to three years’ probation, during which he must perform 90 hours of community service. They pleaded guilty to fraud-related charges in 2012.
The sentences stem from “Operation Running Man,” a 14-month undercover fraud investigation headed by the Federal Bureau of Investigation that had already led to a string of related guilty pleas involving other parties.
The investigation, which included the use of recordings by an undercover FBI special agent, revealed Joseph P. Haddad, a Bridgeport-based attorney, conspired with chiropractors and others to defraud several insurance companies by exaggerating the auto accident injuries of Haddad’s clients and the cost of their medical care to justify larger monetary settlements with insurance companies, according to the U.S. attorney.
As part of the scheme, the co-conspirators fabricated medical records, prescribed unnecessary pain medication, performed unnecessary chiropractic treatment, ordered and billed for diagnostic tests of questionable medical value, and overstated injuries or permanent partial disabilities that were allegedly caused by the accidents.
Daly’s office said that between December 2006 and February 2010, Haddad conspired in the scheme with Francisco R. Carbone, who had been licensed to practice medicine until his license was revoked by Connecticut in March 2005, and with Dr. Marc Kirshner, who owned and operated two chiropractor offices in Bridgeport and one in Stamford.
As part of the scheme, Haddad paid “runners” to locate and deliver to him clients for his personal injury practice. Haddad then regularly instructed clients to see Carbone for purported medical treatment, even though Haddad was aware that Carbone had lost his medical license.
Haddad also referred clients to Kirshner’s Bridgeport chiropractor offices, which operated under the name Health First Medical P.C. Kirshner often permitted Haddad to influence the course of patients’ medical treatments by acquiescing to Haddad’s instructions that a patient receive more treatment and diagnostic tests despite the questionable need for both.
Haddad, Carbone, Kirshner and two others have pleaded guilty to charges stemming from the scheme, Daly reported. They await sentencing.
More than 10 insurance carriers lost at least $1.7 million as a result of the fraud scheme. The loss directly attributable to Lynne’s dealing with Haddad clients is $117,251. Underhill ordered Lynne to pay restitution in that amount.
