Clinic owner pleads guilty in fraud case Scheme involving claims for physical therapy took in $1.5 million

November 22, 1997|By Michael James | Michael James,SUN STAFF

A Baltimore woman pleaded guilty yesterday to running an elaborate fraud scheme at a physical therapy clinic that federal prosecutors say raked in more than $1.5 million and enabled her to buy luxury cars and a pricey South Florida condominium.

Deborah S. Kolodner, 42, stole money by submitting fraudulent insurance claims for physical therapy never provided to patients at Industrial Medical and Physical Therapy, her St. Paul Place clinic, according to her plea agreement filed in U.S. District Court in Baltimore.

She also double-billed insurance companies for X-rays and inflated claims on minor injuries, prosecutors said.

The clinic, described by prosecutors as "an accident mill" that ground out insurance claims for the dozens of patients treated for accident injuries each day, recruited "runners" to scour the city looking for motor vehicle accidents, court papers said.

The runners were paid $100 to $600 for each patient brought to Industrial Medical, court papers said.

Kolodner, who in 1994 was convicted in New Jersey of practicing medicine without a license as a result of a medical clinic she ran with her husband, pleaded guilty yesterday to mail fraud and tax evasion. Her husband, Fred, died in 1995.

She could receive two years to 33 months in prison at her sentencing Feb 27, said Assistant U.S. Attorney Virginia B. Evans.

Prosecutors have filed papers seeking to seize a lavish $1.5 million condominium Kolodner owns in Bal Harbour, Fla. They allege that the condominium was partly paid for with money from the fraud scheme.

Pub Date: 11/22/97

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