FSCO lays charges against rehab clinics, individuals

The Financial Services Commission of Ontario (FSCO) laid 84 charges under Ontario’s Insurance Act in mid-January against two Toronto rehabilitation clinics and four individuals alleged to have submitted false invoices to auto insurers.

The clinics were each charged with seven counts of knowingly making false or misleading statements to an auto insurer to obtain payment for goods and services provided to an insured, and seven counts of engaging in an unfair or deceptive act.
The clinics charged include Fairview Assessment Centre and Pacific Assessment Centre, both located on Finch Ave. West in Toronto. Four individuals charged were Danny Grossi, Alexandre Lobatch, Yaniv Tamsout and Vitali Tourkov.

“When fraudsters falsify accident treatment bills, Ontario drivers take the hit through higher premiums,” Philip Howell, CEO and Superintendent of FSCO noted.

Meanwhile, in mid-December York Regional Police north of Toronto arrested and charged nine individuals in connection with alleged staged collisions. The arrests were made as a result of the second phase of Project Sideswipe, an ongoing investigation into allegedly false auto insurance claims at medical rehabilitation and assessment centres in and near Toronto.

“As of December 13, 2012, nine suspects had been arrested and 41 charges, including participate in criminal organization, possession of proceeds of crime over $5,000 and money laundering have been laid,” York Regional Police announced in December.

The nine people charged were in addition to 51 individuals charged with 201 counts in the first phase of Project Sideswipe.

The investigation was originally launched by the Insurance Bureau of Canada (IBC) in August 2010, which subsequently turned over its information to the police.