Last of 21 Defendants Sentenced in Private Insurance Health Care Fraud Conspiracy

On October 10, 2007 Dmitry Rakovsky was sentenced by United States District Judge Marcia G. Cooke in Miami, Florida. Rakovsky was sentenced to a term of 59 months in prison, prisoner.jpgto be followed by a term of three years of supervised release. He was also ordered to forfeit property and pay restitution in the amount of $900,000.
Rakovsky, and co-defendants Boris Royzen and his wife Eva Royzen, were charged in a twenty-one (21) defendant, thirty-three (33) count health care fraud Indictment. The Indictment charged doctors, chiropractors, massage therapists, an office manager, and four medical clinics, Vista Mar Medical Rehab Corp., Plantation Medical Recovery Center, Inc., Romana Medical, Inc., and Dial Medical Rehab, Inc., with health care fraud. Rakovsky was the final defendant to be sentenced in this case.
Previously Boris Royzen was sentenced to 40 months in prison, followed by three years supervised release. He was also ordered to forfeit property and pay $1.8 million restitution. His wife, Eva, was previously sentenced to three years of probation, forfeit property and pay restitution in the amount of $1.8 million. The medical clinics were ordered to pay restitution as follows: Vista Mar: $70,674.08; Romana Medical: $20,641.85; Plantation Medical Recovery: $31,292.75; and Dial Medical: $13,818.06.
It was alleged that from November 2003 through July 2005, the defendants conspired to commit health care fraud by submitting fraudulent health insurance claim forms to insurance companies for services that were not medically necessary and/or were not rendered under personal injury protection (PIP) provisions for alleged victims of automobile accidents. Boris Royzen and Dmitry Rakovsky paid runners to solicit victims and alleged victims of automobile accidents to become patients of the clinics. In addition, Boris Royzen and Dmitry Rakovsky caused fraudulent applications to be filed with the State of Florida, falsely stating that the defendant clinics were 100% owned by licensed medical practitioners when, in truth, the medical staff named on the applications were employees of the clinics.
Thirty private insurance companies, including State Farm, GEICO, AllState, Liberty Mutual, MetLife, Progressive, Federated Insurance and United Auto Insurance were defrauded. The defendant medical clinics received over $2.5 million in fraudulent insurance payments.

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