Dallas Law Firm to Repay $840K for Scam Run Without Partner’s Knowledge
A Dallas law firm will pay $840,000 in restitution as a result of a fake accident scam that authorities say was run without the owner’s knowledge.
The firm Trey Allen has already paid $200,000 of the total and will pay the rest over the next five years, the Dallas Morning News reports. Authorities say the firm’s owner, John H. Allen III, wasn’t aware of the activities of his legal assistant, “Tommy” Tung Tran, who pleaded guilty in the insurance scam, the newspaper says. A story in the Fort Worth Star-Telegram says two of the firm’s legal assistants were involved in the phony accident scheme.
The assistants were accused of referring clients from staged accidents to chiropractors who paid kickbacks of 30 percent to 40 percent of the insurance payments they received, according to the Star-Telegram.
The firm pleaded guilty to conspiracy to commit mail and healthcare fraud and was sentenced to five years’ probation, the Star-Telegram says.
Earlier ABAJournal.com coverage:
Texas Law Firm Takes $840K Plea, Profited from Auto Accident Scheme
Updated at 2:12 p.m. to include link to earlier coverage.
