Michael Danilovich Sentenced For Racketeering, Health Care Fraud, Securities Fraud, Mail Fraud, Wire Fraud, And Money Laundering

<h2>Michael Danilovich Sentenced To 25 Years For Racketeering&comma; Health Care Fraud&comma; Securities Fraud&comma; Mail Fraud&comma; Wire Fraud&comma; And Money Laundering<&sol;h2>&NewLine;<h3>Racketeering Conviction Included Largest No-Fault Insurance Fraud Scheme Ever Charged<&sol;h3>&NewLine;<p>Preet Bharara&comma; the United States Attorney for the Southern District of New York&comma; announced that MICHAEL DANILOVICH was sentenced today to 25 years in prison in connection with his conviction for 16 counts of <em>racketeering conspiracy&comma; securities fraud&comma; health care fraud&comma; mail fraud&comma; wire fraud&comma; and money laundering<&sol;em> charges following a five-week jury trial&period;  The jury convicted DANILOVICH of racketeering arising out of his operation&comma; from 2007 through 2012&comma; of the largest single no-fault <strong>automobile insurance fraud scheme<&sol;strong> ever charged&semi; his operation&comma; from 2007 to 2009&comma; of two <strong>investment fraud<&sol;strong> schemes&comma; Lyons Ward &amp&semi; Associates and the Rockford Group&semi; and his attempted operation&comma; from 2011 to 2012&comma; of a third <em>investment fraud scheme<&sol;em>&comma; Baron &amp&semi; Caplan Association&comma; including after he was arrested and released on bail in this case&period;  DANILOVICH was sentenced today by United States District Judge Deborah A&period; Batts&comma; who presided over the trial&period;<&sol;p>&NewLine;<div class&equals;"mh-content-ad"><script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js&quest;client&equals;ca-pub-9162800720558968"&NewLine; crossorigin&equals;"anonymous"><&sol;script>&NewLine;<ins class&equals;"adsbygoogle"&NewLine; style&equals;"display&colon;block&semi; text-align&colon;center&semi;"&NewLine; data-ad-layout&equals;"in-article"&NewLine; data-ad-format&equals;"fluid"&NewLine; data-ad-client&equals;"ca-pub-9162800720558968"&NewLine; data-ad-slot&equals;"1081854981"><&sol;ins>&NewLine;<script>&NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi;&NewLine;<&sol;script><&sol;div>&NewLine;<p>U&period;S&period; Attorney Preet Bharara said&colon;  &OpenCurlyDoubleQuote;Michael Danilovich made a career out of <em>defrauding people<&sol;em>&period;  From running the largest no-fault <em>insurance fraud scheme<&sol;em> in the country to operating multi-million dollar investment frauds&comma; Danilovich’s deception was wide-ranging&period;  Thanks to the outstanding work of the FBI and the NYPD&comma; Danilovich’s career of crime has been put to an end&period;”<&sol;p>&NewLine;<p>According to the Superseding Indictment&comma; evidence admitted at trial&comma; court filings&comma; and statements made in open court&colon;<&sol;p>&NewLine;<p>From 2007 through 2012&comma; DANILOVICH was a leader of an enterprise engaged in a pattern of racketeering that included a massive scheme to defraud automobile insurance companies under New York’s no-fault insurance law&comma; multiple securities fraud schemes&comma; money laundering&comma; and the operation of illegal gambling businesses&period;<&sol;p>&NewLine;<p>Under New York State law&comma; every vehicle registered in the state is required to have no-fault automobile insurance&comma; which enables the driver and passengers of a registered and insured vehicle to obtain benefits of up to &dollar;50&comma;000 per person for injuries sustained in an automobile accident&comma; regardless of fault &lpar;the &OpenCurlyDoubleQuote;No-Fault Law”&rpar;&period;  The No-Fault Law requires prompt payment for medical treatment&comma; thereby obviating the need for claimants to file personal injury lawsuits in order to be reimbursed&period;  Under the No-Fault Law&comma; patients can assign their right to reimbursement from an insurance company to others&comma; including medical clinics that provide treatment for their injuries&period;  New York State law also requires that all medical clinics in the state be incorporated&comma; owned&comma; operated&comma; and controlled by a licensed medical practitioner in order to be eligible for reimbursement under the No-Fault Law&period;  Insurance companies will not honor claims for medical treatments from a medical clinic that is not actually owned&comma; operated&comma; and controlled by a licensed medical professional&period;<&sol;p>&NewLine;<p>From 2007 through 2012&comma; DANILOVICH’s organization defrauded automobile insurance companies of more than &dollar;100 million by&comma; among other things&comma; creating and operating medical clinics that provided unnecessary and excessive medical treatments in order to take advantage of the No-Fault Law&period;  In addition&comma; Danilovich’s organization fraudulently owned and controlled more than a dozen medical professional corporations &lpar;&OpenCurlyDoubleQuote;PCs”&rpar; – including no fault clinics&comma; MRI offices&comma; and acupuncture and chiropractic PCs – by paying licensed medical professionals to use their licenses to incorporate the professional corporations&period;  DANILOVICH and his co-conspirators paid kickbacks of thousands of dollars to runners to recruit patients to receive the same battery of tests and treatments&comma; and received kickbacks from other co-conspirators for referring patients for additional unnecessary treatments&period;  All told&comma; Danilovich’s organization billed insurance companies for tens of millions of dollars in fraudulent medical treatments&period;  Furthermore&comma; DANILOVICH and his co-conspirators laundered the proceeds of the fraud through check-cashing entities and shell companies&comma; and used the money to pay for luxury cars&comma; watches&comma; and vacations&period;<&sol;p>&NewLine;<p>In addition to the no-fault insurance fraud scheme&comma; DANILOVICH was convicted for operating two investment fraud schemes that swindled innocent victims out of nearly &dollar;18 million&period;  Both schemes – Lyons Ward &amp&semi; Associates and the Rockford Group – purported to be settlement claims funding companies that invested in lawsuits in return for a portion of future settlements&period;  DANILOVICH also attempted to operate a third scheme&comma; Baron &amp&semi; Caplan Association&comma; including after he was arrested and released on bail in this case&period;  As part of these schemes&comma; DANILOVICH and his co-conspirators created bogus documents and account statements used by cold-callers to solicit victims through false representations&period;  In reality&comma; there was no investment fund at all&semi; instead&comma; DANILOVICH and his co-conspirators simply stole the money invested by victims and laundered the proceeds by wiring them overseas to shell companies in Eastern Europe&comma; which were then turned into cash in the United States&period;<&sol;p>&NewLine;<p>DANILOVICH’s organization also operated high-stakes illegal poker games and illegal sports books&period;<&sol;p>&NewLine;<p class&equals;"rtecenter">&lbrack;separator type&equals;&&num;8221&semi;thin&&num;8221&semi;&rsqb;<&sol;p>&NewLine;<p>At DANILOVICH’s first trial in the fall of 2013&comma; a mistrial was declared after the jury failed to reach a unanimous verdict on all counts&period;<&sol;p>&NewLine;<p>On March 19&comma; 2015&comma; co-defendant Mikhail Zemlyansky was convicted following a four-week trial before U&period;S&period; District Judge J&period; Paul Oetken of six counts of racketeering conspiracy&comma; securities fraud&comma; mail fraud&comma; and wire fraud charges&comma; related to the crimes committed by the Zemlyansky&sol;Danilovich Organization&period;  On January 28&comma; 2016&comma; Judge Oekten sentenced Zemlyansky to 15 years in prison&period;<&sol;p>&NewLine;<p>Mr&period; Bharara thanked the Federal Bureau of Investigation and the New York City Police Department for their continued outstanding work in this investigation&period;  Mr&period; Bharara also thanked the National Insurance Crime Bureau&comma; the investigative units of the insurance companies&comma; the Manhattan District Attorney’s Office&comma; and the Alabama Securities Commission for their valuable assistance with the investigation&period;<&sol;p>&NewLine;<p>The case is being prosecuted by the Office’s Violent &amp&semi; Organized Crime Unit&period;  Assistant U&period;S&period; Attorneys Daniel S&period; Noble&comma; Joshua A&period; Naftalis&comma; and Jaimie L&period; Nawaday are in charge of the prosecution&period;<&sol;p>&NewLine;

Financial FraudHealth Care FraudMail FraudMoney Launderingracketeering conspiracySecurities Fraudwire fraud