6 accused of targeting Michigan car crash victims with insurance fraud scheme

DETROIT (FOX 2) - Six people are accused of using Michigan car crash victims as part of an insurance fraud scheme.

According to Attorney General Dana Nessel, Michael Angelo, who is from New Jersey, set up a hotline with the number 1-800-USLawyer in 2013. When victims called the hotline, Angelo and his assistant, Ybana Agrelo, would allegedly refer the callers to Michigan Accidents Associates, and other law firms Angelo conspired with, for legal representation.

These law firms would direct the victims to enterprises Angelo is alleged to have owned or controlled for treatment, including Mercyland Health Services, Greater Lakes Ambulatory Surgical Center, Tox Testing, Inc. dba Paragon Diagnostics, and US Health Pharmaceuticals dba Meds Direct.

Then, obstetrician-gynecologist Dr. Chitra Sinha is accused of taking the victims through a predetermined protocol that included office visits, alleged medical devices and injections completed at the Greater Lakes Surgical Center, prescribing medications that were then dispensed by Robert Presley at Meds Direct Pharmacy, drug screens every 30 days billed by Tox Testing/Paragon Diagnostics, and referrals to physical therapy and diagnostic imaging with other coconspirators.

The businesses then billed no-fault auto insurance carriers or the Michigan Assigned Claims Plan for the uninsured victims.

"This type of fraud is not just dangerous to the wellbeing of accident victims and a drain on the no-fault system; it exploits citizens who may be financially vulnerable and puts them at risk of harm," Nessel said. "I am grateful for the work of the fraud investigation teams at the Department of Insurance and Financial Services’ and my department’s Auto Insurance Fraud Unit who worked tirelessly for years to see this case through."

A years-long investigation included reviewing more than 15,000 audio files of wiretap conversations and more than 67,000 documents, along with interviews and search warrants, which led to more than 100 GB of additional data to review.

The suspects haven't been arraigned yet. They are facing these charges:

Michael Angelo, 61, Springfield, NJ

Four counts of false pretenses $1,000-$20,000
Four counts of conspiracy to commit false pretenses $1,000 to $20,000
Six counts of prescribing/dispensing schedule 2 controlled substances
One count of conducting a criminal enterprise
Three counts of insurance fraud

Chitra Sinha, 80, Bloomfield

Three counts of false pretenses $1,000-$20,000
Three counts of prescribing schedule 2 controlled substances
One count of conducting a criminal enterprise
Three counts of insurance fraud

Robert Presley, 49, Ferndale

Two counts of delivery of schedule 2 controlled substances
One count of conducting a criminal enterprise
Two count of insurance fraud

Mohammad Ali Abraham, 70, Dearborn Heights

Three counts of false pretenses $1,000-$20,000
One count of conducting a criminal enterprise

Thomas Quartz, 36, Grosse Ile

Two counts of conspiracy to commit false pretenses $1,000 to $20,000
One count of conducting a criminal enterprise

Hassan Fayad, 37, Dearborn

Two counts of conspiracy to commit false pretenses $1,000 to $20,000
One count of conducting a criminal enterprise

Crime and Public Safety News Michigan