Three New Jersey chiropractors get jail time in auto insurance fraud case

By Mark E. Vogler
Staff Writer

April 17, 2008 12:44 am

—

SALEM — Three New Jersey chiropractors came to downtown Lawrence more than five years ago, hoping to get rich from a second-floor clinic they opened above a Dunkin' Donuts on Essex Street to treat the victims of car crashes.

Some said they were on the way to making their fortunes, as evidenced by the nearly $400,000 that Health Group of New England billed insurance companies during 2003 — its first year in business.

But yesterday, Sean Nisivoccia, 37; his brother Charles, 41; and their associate Craig Klein, 41, all admitted to prosecutors' allegations that they made a lot of money off staged car accidents and bogus injury claims. Each of the men received a 90-day jail sentence after pleading guilty to two counts of filing false motor vehicle insurance claims and two counts of conspiracy.

"They came up here essentially to prey on the commonwealth," said Essex Assistant District Attorney James Gubitose, in seeking sentences of three years in state prison for each defendant.

"They saw easy money and they made easy money. ... They provided a market place for dangerous activity that was going on," Gubitose said, noting that Health Group of New England established itself as the seventh-largest biller out of 21 chiropractic or physical therapy clinics in Lawrence.

Lenient sentences urged

Instead of jail time, lawyers representing the Nisivoccia brothers and Klein sought "house arrest" or straight probation. They pointed out that former chiropractor Alan Cohen — operator of the now-defunct Lawrence Back & Neck, once the top-billing clinic in the state — only got a three-month jail sentence when he pleaded guilty in August 2006. Cohen spent a decade on Essex Street and his clinic once billed for more than $3 million a year.

"His (Cohen's) billings were significantly more," said Salem attorney Jennifer Koiles, who represented Sean Nisivoccia. "They should receive less than he received," she said.

Cohen was one of 16 people — including four chiropractors and three lawyers — who were indicted in September 2004 by a special Essex County grand jury investigating auto insurance fraud in the Lawrence area. The Nisivoccia brothers and Klein were among those indicted.

"The commonwealth's recommendation, considering the pernicious effect of these crimes on so many people, is certainly a reasonable recommendation," Judge David Lowy said.

"I believe that because of the very serious nature of the crime ... that there be a period of incarceration. There has to be some recognition of harm that's been done," Lowy said.

He sentenced them to two years in Essex County Jail in Middleton, with only 90 days to be served with the balance of the sentence suspended for two years. But if they violate their probation, the full two-year sentence could be imposed.

The judge also required the three men to each perform 500 hours of community service, a condition that the men's lawyers requested be served in New Jersey instead of Massachusetts. Lowy said he was open to a recommendation from the Superior Court Probation Department on where the community service will be performed, but wanted to make sure that is was completed "in nature of restoring justice."

Lowy stayed the sentence until May 9, when the three men will surrender themselves to the court and be taken to the county jail.

Had faced 5 years in prison

Yesterday's plea agreement came less than two weeks before the Nisivoccia brothers and Klein were scheduled to go on trial. If convicted, each could have received up to five years in prison, Gubitose said. He noted that the prosecution's case was much stronger against the three men than it was against Cohen, particularly with the testimony of two runners — Luis Perez and Carlos Pinales — "who were paid handsomely for their services ... thousands of dollars."

"When they (Nisivoccia brothers and Klein) got here, they went about recruiting runners — people who staged accidents in order to gain clients," Gubitose said.

"They also had agreements with lawyers in the area," the prosecutor said. He said Sean Nisivoccia had conversations with Gladys Cruz, a secretary to Lawrence attorney John Buck. He was not charged. But Cruz was among the 16 people indicted on auto insurance fraud charges. Cruz was a spectator in court yesterday.

Brockton attorney Kevin Reddington, who represented Charles Nisivoccia, called the case "a tragedy" and said the three men have been punished significantly already because they will lose their licenses to practice as chiropractors.

Klein's attorney, Richard Egbert of Boston, said he didn't think it would be fair to order 1,000 hours of community service — the same that Cohen received as part of his plea bargain agreement. The judge agreed to cut the time in half.

Only Sean Nisivoccia was licensed as a chiropractor in Massachusetts when Health Group of New England incorporated in January 2003. Charles Nisivoccia and Klein were both licensed as chiropractors in New Jersey.

Investigators said the operators of Health Group of New England had already gotten in trouble with New Jersey authorities before their activities were detected by the Lawrence auto insurance fraud task force. Charles Nisivoccia and Klein pleaded guilty in May 2003 to paying a runner to refer patients to their Clifton, N.J., chiropractic office. They paid fines of $25,000 each, but were allowed to keep their licenses.

A year later — in March 2004 — Sean Nisivoccia was led away from his Essex Street clinic in handcuffs and charged with submitting fraudulent bills for four patients who staged an accident in Methuen in June 2003 to collect insurance money. Six months later, he was indicted.

Copyright © 1999-2008 cnhi, inc.