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Jay Seitz, No-Fault Automobile Insurance Fraud, New York 2014

Grimy Times Exclusive: Convicted Psychologist Jay Seitz Faces Up to 20 Years in Prison

A psychologist from New York has been found guilty of participating in a multi-year no-fault automobile insurance fraud scheme, raking in millions of dollars in unjust compensation. Jay Seitz, 62, was convicted after a six-day jury trial in Manhattan federal court.

According to court documents, between 2006 and 2008, Seitz purported to provide psychological services to patients at medical clinics in the Bronx and Brooklyn. However, he did not diagnose or treat the patients, and the treatment notes he signed were used to generate false claims to no-fault insurance companies.

The claims, totaling over $3 million, were submitted on behalf of two professional corporations associated with Seitz. The insurance providers reimbursed the claims, unaware that the services were not actually provided by a licensed psychologist.

Manhattan U.S. Attorney Preet Bharara praised the investigative work of the Federal Bureau of Investigation and said, ‘Jay Seitz was found by a unanimous jury not only to have betrayed the ethical obligations of his profession but to have committed fraud. His scheme reaped millions of dollars in unjust compensation. Now he may pay for that with the loss of his liberty.’

Seitz is scheduled to be sentenced by Judge Sidney H. Stein on June 18, 2014, and faces up to 20 years in prison for each of the three counts on which he was convicted.

The case is being handled by the Office’s Organized Crime Unit, with Assistant U.S. Attorneys Brian Blais and Kristy Greenberg leading the prosecution.

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