Michigan Attorney General Dana Nessel and Director Anita Fox from the Department of Insurance and Financial Services (DIFS) released a video to announce criminal enterprise and related charges against six individuals who are accused of auto insurance fraud and taking advantage of Michigan residents who were in auto accidents.
“This type of fraud is not just dangerous to the wellbeing of accident victims and a drain on the no-fault system; it exploits citizens who may be financially vulnerable and puts them at risk of harm,” said Nessel. “I am grateful for the work of the fraud investigation teams at the Department of Insurance and Financial Services’ and my department’s Auto Insurance Fraud Unit who worked tirelessly for years to see this case through.”
The charges filed Thursday in the 41B District Court in Clinton Twp. include:
• Michael Angelo, 61, Springfield, NJ
- Four counts of false pretenses $1,000-$20,000
- Four counts of conspiracy to commit false pretenses $1,000 to $20,000
- Six counts of prescribing/dispensing schedule 2 controlled substances
- One count of conducting a criminal enterprise
- Three counts of insurance fraud
• Chitra Sinha, 80, Bloomfield
- Three counts of false pretenses $1,000-$20,000
- Three counts of prescribing schedule 2 controlled substances
- One count of conducting a criminal enterprise
- Three counts of insurance fraud
• Robert Presley, 49, Ferndale
- Two counts of delivery of schedule 2 controlled substances
- One count of conducting a criminal enterprise
- Two count of insurance fraud
• Mohammad Ali Abraham, 70, Dearborn Heights
- Three counts of false pretenses $1,000-$20,000
- One count of conducting a criminal enterprise
• Thomas Quartz, 36, Grosse Ile
- Two counts of conspiracy to commit false pretenses $1,000 to $20,000
- One count of conducting a criminal enterprise
• Hassan Fayad, 37, Dearborn
- Two counts of conspiracy to commit false pretenses $1,000 to $20,000
- One count of conducting a criminal enterprise
Starting in 2013, Angelo, a New Jersey native, owned, operated, and controlled a lawyer hotline, 1-800-USLawyer that he allegedly used as a source of car accident victims for this scheme. He and his assistant Ybana Agrelo, also from New Jersey, maintained this hotline and referred the callers to Michigan Accidents Associates, and other law firms Angelo conspired with, for legal representation. The firms then directed the clients to the many enterprises Angelo is alleged to have owned or controlled for treatment. The alleged Michigan business entities involved, include Mercyland Health Services, Greater Lakes Ambulatory Surgical Center, Tox Testing, Inc. dba Paragon Diagnostics, US Health Pharmaceuticals dba Meds Direct, and 800-USLawyer.
Dr. Chitra Sinha, an obstetrician-gynecologist, then took the patients through the organization’s predetermined protocol that included office visits, alleged medical devices and injections completed at the Greater Lakes Surgical Center, prescribing medications that were then dispensed by Robert Presley at Meds Direct Pharmacy, drug screens every 30 days billed by Tox Testing/Paragon Diagnostics, and referrals to physical therapy and diagnostic imaging with other coconspirators. The businesses then billed no fault auto insurance carriers or the Michigan Assigned Claims Plan for the uninsured accident victims.
“Auto insurance fraud adds billions of dollars in costs to the system all drivers pay for, and it can have serious consequences for people who are in auto accidents. In this case, people underwent care that wasn’t for their health or benefit, leaving them with substance abuse problems and other concerns,” said DIFS Director Anita Fox. “We will continue our strong partnership with the Attorney General as we work together to investigate fraud to protect drivers and reduce costs for all of us.”
This case was referred to Michigan authorities after the FBI completed a years-long investigation, resulting in federal indictments against three of the defendants. From the FBI, the Department of Attorney General received more than 15,000 audio files of wiretap conversations and more than 67,000 documents. The department continued the investigation by interviewing and taking sworn testimony from more than a dozen witnesses and executing 18 search warrants, which resulted in more than 100 GB of additional data to review which took 4 years for Michigan investigators, including the DIFS Fraud Investigation Unit, to review.
Arraignment for the defendants has not yet been scheduled.
The DIFS Fraud Investigation Unit investigates criminal and fraudulent activity related to the insurance and financial markets and works with the Attorney General and law enforcement to prosecute these crimes. Suspected insurance fraud can be reported to DIFS safely, easily and, in most cases, anonymously by calling 877-999-6442 or online by visiting the department’s website at www.michigan.gov/difs/consumers/fraud/report-fraud.
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