Court Awards The Commerce Insurance Company More Than $8.1 Million in Insurance Fraud and Racketeering Case against Chiropractor and Clinics

Published: 2011-09-29 14:11:48
Author: Commerce Insurance Company | September 27, 2011

BOSTON--(EON: Enhanced Online News)--The Commerce Insurance Company, a member of the MAPFRE U.S.A. Group of Companies, today announced its victory in a multi-million dollar insurance fraud lawsuit in the Boston, Massachusetts Superior Court.

Judge John Cratsley ordered the defendants, Jason Corbett and his chiropractic clinics, to pay Commerce more than $8.1 million in damages. Five other insurance companies were awarded separate judgments.

Corbett filed hundreds of lawsuits against insurers, including Commerce, seeking payment for treatments allegedly provided to automobile accident victims. Commerce countersued for insurance fraud, conspiracy, unfair trade practices, and violations of the federal Racketeer Influenced and Corrupt Organizations (“RICO”) Act.

Corbett admitted that he paid so-called “runners” as much as $500 per person to solicit patients for his clinics. Judge Cratsley agreed with Commerce, finding that Corbett committed fraud “stemming from chiropractic patients treated at the Corbett Clinics who were referred to the clinics by runners or who received unnecessary treatment.”

The Corbett decision follows Commerce’s victory earlier in the year in which Commerce recovered nearly $6.6 million in a separate Massachusetts insurance fraud case.

“This victory demonstrates that Commerce and MAPFRE USA continue to work hard to protect our customers from the high cost of insurance fraud,” said Jaime Tamayo, President and CEO of MAPFRE U.S.A. Corp. and Commerce. Mr. Tamayo added that “MAPFRE USA will continue to combat insurance fraud in every state in which we do business to the benefit of our policyholders.”

About The Commerce Insurance Company and MAPFRE USA

The Commerce Insurance Company is the largest writer of private passenger automobile insurance in Massachusetts and is part of the MAPFRE U.S.A. Group of Companies. The MAPFRE U.S.A. Group of Companies is the 19th largest writer of private passenger automobile insurance in the United States. Commerce is rated A+ (Superior) by A.M. Best. Co.



For The Commerce Insurance Company
Daniel P. Olohan, 508-949-4674