CLINTON TOWNSHIP, Mich. – Five people from Oakland and Wayne counties have been charged for being part of a scheme to take advantage of people who were involved in car crashes in Michigan, officials said.
Scheme details
Michael Angelo, 61, of Springfield, New Jersey, is accused of running a lawyer hotline, 1-800-USLawyer, starting in 2013, to lure car crash victims into the scheme.
Angelo and his assistant would run the hotline and refer callers to Michigan Accidents Associates and other law firms for legal representation, according to authorities.
Those law firms would then direct clients to enterprises under Angelo’s control or ownership to get treatment, Michigan Attorney General Dana Nessel said.
Mercyland Health Services, Greater Lakes Ambulatory Surgical Center, Tox Testing, Inc. (Paragon Diagnostics), and US Health Pharmaceuticals (Meds Direct) were linked to the scheme.
Dr. Chitra Sinha, 80, of Bloomfield Township, took patients through a predetermined protocol that included office visits, medical devices, injections, prescribing medications, drug screens, and referrals for physical therapy and diagnostic imaging, authorities allege.
“In this case, people underwent care that wasn’t for their health or benefit, leaving them with substance abuse problems and other concerns,” said Anita Fox, the director of the Department of Insurance and Financial Services.
The medical devices and injections were performed at Greater Lakes Surgical Center, and medications were prescribed and dispensed by Robert Presley, 49, of Ferndale, at Meds Direct Pharmacy, officials said.
Drug screens were performed every 30 days and billed by Parago Diagnostics, Nessel said.
Those businesses would then bill no-fault auto insurance carriers or the Michigan Assigned Claims Plan for the uninsured crash victims, according to officials.
“This type of fraud is not just dangerous to the wellbeing of accident victims and a drain on the no-fault system -- it exploits citizens who may be financially vulnerable and puts them at risk of harm,” Nessel said.
“Auto insurance fraud adds billions of dollars in costs to the system all drivers pay for, and it can have serious consequences for people who are in auto accidents,” Fox said.
Charges
Charges in this case were filed Thursday, April 27, at 41B District Court in Clinton Township.
Angelo is charged with four counts of false pretenses between $1,000 and $20,000, four counts of conspiracy to commit false pretenses between $1,000 and $20,000, six counts of prescribing/dispensing schedule 2 controlled substances, three counts of insurance fraud, and one count of conducting a criminal enterprise.
Sinha is charged with three counts of false pretenses between $1,000 and $20,000, three counts of prescribing schedule 2 controlled substances, three counts of insurance fraud, and one count of conducting a criminal enterprise.
Presley is charged with two counts of delivery of schedule 2 controlled substances, two counts of insurance fraud, and one count of conducting a criminal enterprise.
Mohammad Ali Abraham, 70, of Dearborn Heights, is charged with three counts of false pretenses between $1,000 and $20,000 and one count of conducting a criminal enterprise.
Thomas Quartz, 36, of Grosse Ile, is charged with two counts of conspiracy to commit false pretenses between $1,000 and $20,000 and one count of conducting a criminal enterprise.
Hassan Fayad, 37, of Dearborn, is charged with two counts of conspiracy to commit false pretenses between $1,000 and $20,000 and one count of conducting a criminal enterprise.
Arraignment has not yet been scheduled.
Years-long investigation
The case was referred to Michigan authorities after the FBI investigated for years. FBI agents sent more than 15,000 audio files of wiretap conversations and more than 67,000 documents to investigators.
Michigan officials took over the investigation and interviewed more than a dozen witnesses. They also executed 18 search warrants.
It took four years to review more than 100 GB of additional data found during those searches.