3 GTA clinics convicted in insurance fraud scam
Posted January 15, 2014 6:15 am.
This article is more than 5 years old.
Three GTA clinics have been convicted as part of a larger insurance fraud scam that investigators say led to $4 million in false payouts.
As part of a staged auto accident ring, the clinics knowingly made false claims to insurers.
Toronto Police began their investigation into Project Whiplash in 2009. The Insurance Bureau of Canada and the Financial System Commission of Ontario (FSCO) were also involved in the investigation.
McCowan Rehabilitation Clinic was found guilty of two offences, knowingly making a false or misleading statement to an auto insurer to obtain payment for goods and services provided to an insured and engaging in unfair or deceptive acts or practices. The clinic was sentenced to the maximum fine of $100,000 for each offence, according to the FSCO.
In addition, a significant restitution order was imposed of $120,000.
Physiotherapy Clinic faced similar charges. The registered company director at the time of the offence, Nishanthan Ponnuthurai, pleaded guilty on behalf of the clinic to making false statements, and the company was fined $100,000.
North York Health and Rehabilitation has also been convicted of similar charges and remains before the courts for sentencing.
Three people were also fined.
Sipaskaran Sabaratnam, a principal of Ontario Rehabilitation Clinic, received a $10,000 fine after pleading guilty to failing to take reasonable care to prevent the company from making false statements to an insurer.
Ponnuthurai pleaded guilty to a charge of failing to take reasonable care to prevent the company from providing insurance claims forms to an insurer that were not in accordance with the Insurance Act and regulations and was fined $9,000.
Jeyakanthan Thivendran, a principal of North York Health and Rehabilitation, pleaded guilty to a charge of failing to take reasonable care to prevent the company from providing insurance claims forms to an insurer that were not in accordance with the Insurance Act and regulations. He was fined $5,000.
