Posted Aug 09, 2007 12:41 pm CDT
A New Jersey lawyer and his former law firm have pleaded guilty to paying runners $70,000 to find people to submit false accident claims.
The charges were the result of an undercover insurance fraud investigation spurred by complaints from Allstate and Prudential insurance companies.
Irwin Seligsohn of Kinnelon, N.J., admitted he used runners to find people to submit claims based on staged or nonexistent accidents, the New Jersey Law Journal reports. He then represented them in an effort to obtain insurance proceeds.
Seligsohn pleaded guilty to conspiracy to commit health-care claims fraud, criminal use of runners and tax fraud, the legal newspaper reports.
The now-defunct law firm, Seligsohn, Goldberger & Shinrod of West Orange, N.J., pleaded guilty to conspiracy to commit health-care claims fraud and agreed to pay $50,000 in fines and restitution.