Rockland Woman Indicted in Connection with Insurance Fraud Scheme
Alleged Scheme Resulted in Fraudulent Payments of More Than $28,000
BOSTON – A Rockland woman has been indicted in connection with a scheme to fraudulently collect insurance payments of more than $28,000, Attorney General Martha Coakley announced today. Olga O’Connor Rich, 41, is charged with Motor Vehicle Insurance Fraud (46 counts), Larceny Over $250 (4 counts) and Attempted Larceny (3 counts).
“We allege that the defendant submitted fraudulent bills to insurance companies to collect for treatment that was never provided,” AG Coakley said. “Insurance fraud leads to higher premiums and puts a greater burden on consumers through no fault of their own.”
“This indictment is the culmination of a lengthy investigation by several agencies who work together to eliminate insurance fraud in Massachusetts, including the Insurance Fraud Bureau of Massachusetts, the State Police, and the Attorney General’s office,” said Daniel Johnston, Executive Director of the Insurance Fraud Bureau. “Taking fraud out of the system reduces insurance rates for all honest citizens.”
Rich was the sole owner of South Coastal Physical Therapy (SCPT), located in Brockton, from 2001 through 2009. According to authorities, Rich used her position at SCPT to submit fraudulent physical therapy bills to several automobile insurance carriers. These “supplemental bills” were allegedly sent months or years after the initial billings were sent to the insurers for purported treatment that was never rendered.
According to authorities, Rich continued to submit the supplemental bills to insurers even after SCPT closed and ceased all operations in December 2009. Authorities allege that Rich continued to make calls to insurers seeking reimbursement as recent as August 2011. Further investigation revealed that as a result of the alleged scheme, Rich submitted fraudulent bills totaling nearly $60,000 to insurance companies and received payments of more than $28,000 between August 2007 and August 2011.
This case was referred to the Attorney General’s Office by the Insurance Fraud Bureau of Massachusetts (IFB) following its investigation.
A special statewide grand jury returned indictments against Rich on September 13. Rich will be arraigned in Plymouth Superior Court on a later date.
AG Coakley’s Insurance and Unemployment Fraud Division (IUFD) works to protect consumers and the integrity of the insurance system by investigating and prosecuting those who commit fraud against all types of insurers, including the Commonwealth’s unemployment insurance and workers’ compensation system. The prosecution of insurance fraud helps prevent the increase in premiums and taxes that are the result of fraudulent insurance claims. In 2011, the division obtained nearly $5.6 million in restitution orders in 33 matters.
Assistant Attorney General Audrey Cosgrove of Attorney General Martha Coakley’s Insurance and Unemployment Fraud Division is prosecuting this case with assistance from Massachusetts State Police and the IFB.