Psychologist Found Guilty in Manhattan Federal Court of Mail and Health Care Fraud Charges in Connection with Multi-Year, No-Fault Automobile Insurance Fraud Scheme
| U.S. Attorney’s Office March 12, 2014 |
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JAY SEITZ, a psychologist licensed to practice in the state of New York, was found guilty yesterday in Manhattan federal court of one count of conspiracy to commit mail fraud and health care fraud, one count of mail fraud, and one count of health care fraud in connection with his participation in a multi-year, no-fault automobile insurance fraud scheme. SEITZ was convicted after a six-day jury trial presided over by U.S. District Judge Sidney H. Stein.
Manhattan U.S. Attorney Preet Bharara said: “Jay Seitz was found by a unanimous jury not only to have betrayed the ethical obligations of his profession but to have committed fraud. His scheme reaped millions of dollars in unjust compensation. Now he may pay for that with the loss of his liberty.”
According to the indictment filed in Manhattan federal court, other court documents, and statements made during related court proceedings:
Between 2006 and 2008, SEITZ purported to provide psychological services to patients at medical clinics located in the Bronx and Brooklyn, New York. SEITZ signed treatment notes that described the diagnoses he purportedly made and the services he purportedly provided to patients treated at these clinics. These treatment notes were used to generate claims that were submitted to no-fault insurance companies for reimbursement. These claims reflected that the psychological services for which reimbursement was sought were provided by SEITZ. In fact, SEITZ did not diagnose or treat the patients on whose behalf claims were submitted to no-fault insurance providers. Although the patients at the clinics with which SEITZ was associated sometimes received psychological screening and treatment, this treatment was provided by individuals who were not licensed psychologists or licensed social workers. In addition, the treatment duration reflected on the claims forms often exceeded the actual duration of services provided. No-fault insurance providers reimbursed over $3 million of claims submitted on behalf of two professional corporations associated with SEITZ, for patients purportedly treated by SEITZ.
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SEITZ, 62, of New York, New York, faces a maximum sentence of 20 years in prison for each of the three counts on which he was convicted, and is scheduled to be sentenced by Judge Stein on June 18, 2014. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation.
The case is being handled by the Office’s Organized Crime Unit. Assistant U.S. Attorneys Brian Blais and Kristy Greenberg are in charge of the prosecution.