NEW YORK,
Feb. 29 (Xinhua) -- A total of 36 people were charged on Wednesday in New York
City with defrauding automobile insurers out of more than 275 million U.S.
dollars in accident benefits.
According
to an indictment released in U.S. District Court in Manhattan, the racketeering
and money laundering ring used phony clinics that billed insurers for
unnecessary treatments.
New York
law requires vehicles registered in the state to carry no-fault insurance
providing as much as 50,000 U.S. dollars per person to cover injuries sustained
in auto accidents.
FBI agents
and police detectives around the New York City area began taking the suspects
into custody early Wednesday morning and suspects will face charges that
include racketeering, health care fraud, money laundering, insurance fraud and
wire fraud.
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