Jacksonville Clinic Owner Arrested for Racketeering and Insurance Fraud
Sandy Morales, who owned and operated Gate Parkway Diagnostic Center, has been arrested for racketeering and insurance fraud charges, as reported in a June 18, 2015 article by the Jacksonville Business Journal.
According to the Florida Department of Financial Services, Sandy Morales organized a complex Personal Injury Protection (PIP) fraud scam that resulted in over $100,000 in fraudulent filing claims for injuries in accidents which did not occur.
Investigators stated that Morales’ arrest is one of 180 arrests since September 2012 that are tied to the fraud network. According to the Division of Insurance Fraud, Morales elaborately staged multiple car accidents, paid people to pose as passengers, and then paid those individuals to seek treatment in his clinic for bogus injuries. Morales is also accused of recruiting other clinic owners to participate in the fraud, and sending patients to those clinics in order to increase the fraud network.
The clinics involved in the PIP scam, now closed, include:
- Arlington Rehabilitation Services Inc.
- Baymeadows Injury Center LLC
- Health Point Injury Center LLC
- One Touch Therapy Center Inc.
- Saint Jose Injury Center LLC
- Therapy Diagnostics Tech Medical Inc.
- Wellness Rehab Services Inc.
- Atlas Massage Therapy Corp.
Morales could face a maximum of 45 years in prison, and is currently being held in Duval County Jail with a bond of over $600,000.
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