THIRTY-SEVENTH DEFENDANT SENTENCED FOR ENTERPRISE CORRUPTION IN NO FAULT Medical Mill Enterprise
Westchester County District Attorney Janet DiFiore announced that the three principals and one accomplice in the Elm Street Medical – medical mill fraud enterprise case – were sentenced today to state prison.
Dr. Leonid Slutsky (DOB 3/10/55) of Great Neck, New York, a neurologist and major figure in no-fault fraud throughout the tri-state area was sentenced to one to three years in state prison and paid $376,000 in restitution.
Alexander Karshenboym (DOB 8/07/61) of Woodcliff Lake, New Jersey, was sentenced to one to three years in state prison and paid $470,000 in restitution.
Sergey Chizhov (DOB 6/12/46) of Cliffside Park, New Jersey, was sentenced to one to three years in state prison and paid $970,000 in restitution.
Ella Chizhov (DOB 12/24/46) of Cliffside Park, New Jersey, was sentenced to five years probation.
Of 38 people charged in the investigation, 37 have been convicted and one fled the jurisdiction. Six physicians in addition to criminal sentencing lost their licenses to practice medicine.
A total of $2.375 million in restitution will have been paid back.
Elm Street Medical, PC operating out of One Elm Street, Tuckahoe, New York, bilked insurance companies by exploiting the no-fault provisions of the New York State Comprehensive Motor Vehicle Insurance Reparations Act. (This act entitles persons injured in automobile accidents to a maximum of $50,000 of medical coverage regardless of who is at fault).
Over a period of approximately five years, Elm Street Medical defrauded dozens of insurance companies by upcoding (i.e. the submission of claims containing codes for expensive medical services never provided) or by submitting bogus claims for medical services on behalf of patients who had not been in a car accident.
Elm Street’s physicians would routinely recommend numerous tests or treatments including physical therapy treatment; chiropractic services; dental evaluations, testing and treatment; orthopedic evaluations; psychiatric evaluations and treatment; psychological evaluations and treatment; neurological evaluations and testing; durable medical goods; and excessive diagnostic testing all provided for at the Elm Street facility.
Some of the procedures that were billed for were never performed and others were shams. For example, a simple five minute procedure would be routinely upcoded and billed for a more complicated and longer higher reimbursement procedure. All of the patients were required to assign all their insurance payments to Elm Street.
Patients also received a promise of proceeds from any potential lawsuit as a result of their injuries.
District Attorney Janet DiFiore commented after the sentencing, “The millions of dollars involved in this type of fraud is a tremendous drain on the auto insurance industry and the fraud perpetrated by these four individuals directly impacted auto insurance rates in Westchester County. In sentencing these defendants to state prison, in addition to recovering much of the money stolen, Westchester County residents can have some measure of assurance that their insurance bills are not being artificially inflated by greed, fraud and corruption.”
Assistant District Attorneys Christopher Shaw of the Economic Crimes Bureau and Livia Rodriguez of the Organized Crime and Criminal Enterprise Bureau and Frank Priolo, Deputy Chief, of the Auto Crimes Unit prosecuted the case.
Leonid Slutsky Alexander Karshenboym
Sergey Chizhov Ella Chizhov