Five Men Charged with Fraud After Running Five-Year, $32 Million Slip-and-Fall Scheme

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May 14, 2018

Federal prosecutors have charged five men with “a widespread mail and wire fraud scheme” for running a slip-and-fall lawsuit scheme that cost insurers and property owners $32 million over five years, The New York Times reports.

The scheme involved “neighborhood scouts” who searched for “victims willing to fall in potholes or deliberately trip” outside businesses. Doctors treated these patients and sometimes “performed unnecessary procedures that drove up the potential value of the personal injury lawsuits that followed.” The costs and legal fees were covered by “specialized finance firms, which provide high-interest loans to plaintiffs.” (New York Times)