Four Defendants Sentenced on Federal Charges Stemming from Staged Motor Vehicle Accidents

Louisville, KY – Four defendants were sentenced this week for conspiracy to commit health care fraud. Two of the defendants were also sentenced for mail fraud, and one defendant was sentenced for money laundering.

U.S. Attorney Michael A. Bennett of the Western District of Kentucky, Acting Special Agent in Charge Brian Jones of the FBI Louisville Field Office, Special Agent in Charge Bryant Jackson of the Internal Revenue Service, Criminal Investigation (IRS-CI) Cincinnati Field Office, U.S. Postal Inspector in Charge Lesley Allison of the Pittsburgh Division, and Director Juan Garrett of the Kentucky Department of Insurance made the announcement.

According to court documents, Joel Abad, 40, of Miami, Florida, Junis Peguero, 40, of Riverview, Florida, Carlos Vazquez, 57, of Louisville, Kentucky, Jose Cordoba Reira, 47, of Louisville, Kentucky, and Miguel Moreno-Cardenas, 55, of Louisville, Kentucky, conspired to recruit people to participate in fake automobile accidents and to obtain treatment at certain chiropractic clinics in Louisville, Kentucky, where insurance companies were billed for the treatment.

On September 7, 2023, Peguero was sentenced to 2 years and 7 months in prison, followed by a 3-year term of supervised release, for conspiracy to commit health care fraud and mail fraud.

On September 7, 2023, Vazquez was sentenced to 5-years’ probation for conspiracy to commit health care fraud.

On September 8, 2023, Reira was sentenced to 1 year and 2 months in prison, followed by a 2-year term of supervised release, for conspiracy to commit health care fraud and money laundering.

On September 8, 2023, Moreno-Cardenas was sentenced to 1 year and 2 months in prison, followed by a 2-year term of supervised release, for conspiracy to commit health care fraud and mail fraud.

All defendants were ordered to pay $343,832.41, jointly, and severally, in restitution. There is no parole in the federal system.   

Joel Abad will be sentenced later.

The case was investigated by the FBI, IRS-CI, USPIS, and the Kentucky Department of Insurance.

Assistant U.S. Attorneys Joseph Ansari and Christopher Tieke prosecuted the case with assistance from health care fraud investigator Bob Masterson of the U.S. Attorney’s Office.

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