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Phillip J. Murphy Attorney at Law New City Criminal Defense Attorney
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What Is The Penalty For No-Fault Insurance Fraud In New York?


New York is one of the few states that follows a no-fault system when it comes to car accidents. While this system provides a relatively streamlined route to compensation for injured victims, many argue that it also provides a streamlined opportunity for fraud. What happens if you are accused of no-fault insurance fraud in New York? How do you defend yourself against these allegations? 

What Is No-Fault Insurance Fraud? 

According to an official report released by the New York State Senate in 2011, the no-fault system in this state is “plagued with fraud and abuse.” But what exactly is no-fault insurance fraud, and what does it look like? Here are a few examples:

  • Fake injuries
  • Exaggerated injuries
  • Staged accidents
  • Intentional accidents
  • Excessive medical treatments
  • Unnecessary medical treatments
  • Billing for services that were never provided
  • Fake property damage

The Insurance Information Institute states that one of the most pressing issues is the prevalence of so-called “medical mills.” These are illegal corporate structures set up by people with no medical training. Their purpose is to create the illusion of medical treatments that never actually take place. The end goal is to bill these non-existent services back to the insurance companies. Staged accidents are also becoming very common in New York.

A Historical No-Fault Insurance Fraud Was Recently Uncovered in New York 

On November 3rd of 2023, the Justice Department announced that a man from Queens had pleaded guilty to running one of the most lucrative no-fault insurance frauds that the State had ever seen. In total, the scam raked in over $40 million – all paid out by auto insurance companies. After authorities began to look into the fraud, the defendant admitted that he obstructed law enforcement officials and fabricated documents in a desperate effort to hide his tracks.

Over a seven-year period, the defendant and his co-conspirators set up a number of medical mills throughout New York while falsely stating that these clinics were owned by licensed medical professionals. He then bribed 911 dispatchers, hospital workers, and others to provide the names and phone numbers of recent accident victims. After instructing these victims to get unnecessary medical treatments, he laundered the resulting money with a number of strategies. He now faces up to 12 years in prison for bribery, healthcare fraud, and identity theft. 

Where Can I Find a Qualified, Experienced Criminal Defense Attorney in New York? 

If you’ve been searching for a qualified, experienced New York criminal defense attorney, look no further than Phillip J. Murphy, Attorney at Law. Over the years, we have helped numerous defendants fight for their rights – and we know how daunting this situation may feel. There is no sense in accepting needlessly excessive penalties – so get in touch today to get started with an effective action plan.


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