FSCO Lays 84 Charges Against Two Toronto Rehab Clinics, Four People for Auto Fraud

Appearing in Canadian Underwriter, January 17, 2013 The Financial Services Commission of Ontario (FSCO) has laid 84 charges under Ontario’s Insurance Act 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 of practice. In a statement, the Insurance Bureau of Canada (IBC) congratulated FSCO on laying the charges. “Certainly, auto insurance fraud is a widespread problem that plagues our industry,” Ralph Palumbo, IBC’s vice president for Ontario commented. “This latest announcement underlines the need for the Ontario Government to immediately implement the recommendations of the Anti-Fraud Task Force report.”