MORRISTOWN, NJ -- Liberty Mutual Insurance Company this week served summons and complaints against Scott Greenberg, D.C., a New Jersey chiropractor who the insurance company claims executed a scheme to fraudulently collect personal injury protection (PIP) benefits through an intricate network of illegal patient referrals. Also named in the suit are defendants Pace Chiropractic Associates, Inc., Easton Chiropractic Associates, Inc., Apex Chiropractic Associates, P.A., Access Chiropractic Associates, P.A., Chambersburg Chiropractic Associates, P.C., Middlesex Diagnostic, and Accurate Billing Company, Inc., all New Jersey facilities owned by Dr. Greenberg; and 100 "John Doe" individuals.

The lawsuit, filed November 13 in the Superior Court of New Jersey, Morris County, contains five counts against Dr. Greenberg, accusing him of engaging in a conspiracy of self-referral in violation of New Jersey law.

In an effort to disguise his illegal referral practices, and mislead the public, the suit alleges Greenberg created a series of corporate entities, including the aforementioned chiropractic offices, billing companies, and illegally owned and structured diagnostic testing facilities.

According to one of the suit's counts, Dr. Greenberg created Accurate Billing Company, Inc., through which the he entered into service agreements to be the exclusive billing and collection agent for diagnostic testing facilities, including Neuro Muscular Medical Group, P.A.* Under the service contract, Dr. Greenberg retained 30 percent of Neuro Muscular's monthly receipts, with monies billed to and collected from Liberty Mutual diverted back to Dr. Greenberg. The suit also alleges that Dr. Greenberg further conspired to submit fraudulent claims for PIP benefits by referring patients from his chiropractic offices to his Middlesex Diagnostic entity.

In each instance, Dr. Greenberg allegedly violated New Jersey law by referring patients to provider facilities in which he owns or maintains a significant financial interest.

Liberty Mutual seeks repayment of all prior PIP benefits paid to Dr.Greenberg and his defendant practices, and a punitive award tripling that amount, plus reimbursement of all of its costs and attorneys' fees for this lawsuit under the New Jersey Insurance Fraud Prevention Act.

"Liberty Mutual has zero tolerance for anyone who commits fraud against us or our customers," said Glenn Wolf, director of special investigations for Liberty Mutual. "We are committed to stopping these illegal, deceitful practices, and to driving the cost of fraud out of our customers' premiums."

Liberty Mutual vs. Greenberg, et. al. / 3

The Insurance Information Institute estimates that property/casualty fraud costs more than $21 billion a year. To help combat this problem, Liberty Mutual provides all its claim handlers with specialized training to deter and detect insurance fraud. Its Personal Lines claims department includes a special investigative unit that investigates suspected insurance fraud and works closely with the National Insurance Crime Bureau, and federal, state and local law enforcement departments to prosecute suspected insurance criminals.

Boston-based Liberty Mutual (www.libertymutual.com) is one of the largest multi-line insurers in the property and casualty industry. Full lines of coverage for homeowners, automobile, valuable possessions and personal liability are sold through more than 400 direct-sales offices and marketed through payroll deduction and direct billing to more than 6,500 companies and associations.

The Liberty Mutual Group offers a wide range of products and services; including group life and disability; general liability, commercial auto; commercial property; individual life and annuities; international programs; and financial services. Liberty Mutual has been the leading provider of workers compensation insurance, programs and services in the United States for nearly 65 years. The company employs 37,000 people in more than 900 offices throughout the world.

*Editor's Note: 
Liberty Mutual has filed a separate suit alleging insurance fraud against Neuro Muscular Medical Group, P.A., and its principal Roman Sorin, M.D. 

The corresponding press release, issued November 9, 2000, is available on request.