The operators of a Lowell, Mass. medical clinic catering to patients claiming injuries from automobile accidents have pled guilty to charges of operating a scheme to defraud automobile insurance providers between 1993 and 1997.
Magdalena Dino, 62, and her son, Jerico Dino, 30, pleaded guilty to conspiracy and fifteen counts of mail fraud arising from the operations of the former Highlands Medical Clinic, which later became the Mercy Medical Clinic. Both were accused of defrauding automobile insurers by charging for physical therapy treatment that was not medically reasonable or necessary.
Among other illegal and unethical practices, the two paid runners to refer patients to the clinic. Using an undercover agent and several cooperating witnesses, the investigation disclosed that patients were being treated even when clinic personnel were told that accidents had been staged and that patients were not really hurt.