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Three Chiropractors Sentenced in Staged Accident Scheme
Three South Florida chiropractors have been sentenced for their role in a massive staged automobile accident scheme that bilked insurance companies out of millions of dollars.
Kenneth Karow, 54, a chiropractor from West Palm Beach, was sentenced to 11 years in prison for his part in the scheme. Hermann J. Diehl, 44, a chiropractor from Miami, was sentenced to nine years in prison, while Hal Mark Kreitman, 50, a former chiropractor from Miami Beach, received an eight-year sentence.
The three men were convicted of conspiracy to commit mail fraud and conspiracy to commit money laundering after a seven-week trial in West Palm Beach. Karow was also convicted of 48 substantive counts of mail fraud and 11 substantive counts of money laundering, while Diehl was convicted of two substantive counts of mail fraud and three substantive counts of money laundering. Kreitman was convicted of 21 substantive counts of mail fraud and two substantive counts of money laundering.
The scheme, which was based in Palm Beach and Miami-Dade counties, involved staging automobile accidents and submitting false claims to insurance companies for reimbursement. The defendants would recruit individuals to participate in the staged accidents or to make false claims for reimbursement for treatments that were neither needed nor received.
The investigation, dubbed Operation Sledgehammer, has resulted in charges filed against 93 defendants for their participation in the scheme. Of those, 57 have been charged federally, while 36 have been charged in state court.
The joint federal and state law enforcement investigation has been ongoing for four years and has resulted in the indictment of numerous individuals involved in the scheme. The case is a stark reminder of the extent to which insurance fraud can impact innocent consumers and the importance of vigilance in preventing such crimes.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, praised the work of the investigators and prosecutors involved in the case, saying that their efforts had helped to bring justice to the victims of the scheme.
George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office, and Kelly R. Jackson, Special Agent in Charge of the IRS-CI, also praised the work of the investigators and prosecutors, saying that their efforts had helped to disrupt a massive and complex scheme.
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release â†â€â€
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