In what has been billed as the largest no-fault auto insurance fraud prosecution in history (USAO Press Release)–an alleged $275 million fraud scheme–a jury in the United States District Court for the Southern District of New York was deadlocked after seven weeks of trial as to a Creizman LLC client who was alleged to be one of the scheme’s ringleaders. (See press coverage in major newspaper outlets here: WSJ Article; NYT Article on Arrests;NY Post Article;NYLJ Article). Creizman LLC’s client was not convicted on any of the charges against him. The jury did not find him guilty of a single count.
Creizman LLC’s client and others were charged with health care fraud, mail fraud, money laundering, conspiracy, and racketeering. In the alleged scheme, Creizman LLC’s client and others allegedly operated medical clinics that treated patients injured in auto accidents, and unlawfully billed for medical services that were: (i) not performed; (ii) unnecessary; or (iii) more serious than the actual treatments provided. In addition, Creizman LLC’s client and others allegedly misrepresented to insurance companies that licensed medical professionals owned the medical clinics, but concealed from the insurance companies that the true owners of the clinics were laypersons. According to the Indictment, if the insurance companies knew that the true owners of the clinics were laypersons, they would not have to reimburse those clinics for the invoiced treatments. After seven days of deliberations, the jury did not find Creizman LLC’s client guilty of any of the charges in the Indictment. Thus, the United States Attorney’s Office for the Southern District of New York was unable to convict Creizman LLC’s on a single count.
Below are highlights of Eric Creizman’s opening and closing arguments, as well as certain cross-examinations he conducted at trial: