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PQA Files $3.3 Million RICO Suit

On May 15, 2012, PQA filed a 16-count, $3.3 million lawsuit against 22 defendants on behalf of a Fortune 100 insurance company.  The suit alleges a complex automobile insurance fraud scheme involving a one-room operating center, 10 medical facilities and 11 other defendants.  The suit alleges that certain of the defendants violated the New Jersey Insurance Fraud Prevention Act, the federal Racketeer-Influenced and Corrupt Organizations (“RICO”) Act and the New Jersey RICO statute by engaging in an unlawful practice structure and paying unlawful kickbacks for the referral of patients.  On July 20, 2012, the Superior Court rejected in its entirety a motion to dismiss filed by counsel for several of the defendants.

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