Welcome!

News Feed Item

Three Ontario Rehabilitation Clinics Convicted of Auto Insurance Offences

TORONTO, Jan. 14, 2014 /CNW/ - Three Toronto-area rehabilitation clinics have been convicted of auto insurance offences resulting from co-operative investigations involving the Financial Services Commission of Ontario (FSCO), the Insurance Bureau of Canada, multiple insurers and police. The prosecutions have resulted in maximum fines of $100,000 per conviction.

These convictions stem from an investigation into a staged auto accident ring, dubbed "Project Whiplash" by Toronto Police. According to the Insurance Bureau of Canada, insurers paid out an estimated $4 million in fraudulent claims as a result of this scam.

Following is a summary of some of the convictions achieved to date:

McCowan Rehabilitation Clinic was found guilty of two offences: knowingly making a false or misleading statement to an auto insurer to obtain payment for goods and services provided to an insured and engaging in unfair or deceptive acts or practices. The clinic was sentenced to the maximum fine (at the time of the offence) of $100,000 for each offence. In addition, a significant restitution order was imposed of $120,000.

Physiotherapy Clinic faced similar charges. The registered company director at the time of the offence, Nishanthan Ponnuthurai, pleaded guilty on behalf of the clinic to making false statements, and the company was fined $100,000.

North York Health and Rehabilitation has also been convicted of similar charges and remains before the courts for sentencing.

In addition to the convictions for the clinics, the following individuals were fined:

Sipaskaran Sabaratnam, a principal of Ontario Rehabilitation Clinic, entered a plea of guilty to a charge of failing to take reasonable care to prevent the company from making false statements to an insurer. He was sentenced to a $10,000 fine, pursuant to the Insurance Act.

Nishanthan Ponnuthurai, a principal of Physiotherapy Clinic, pleaded guilty to a charge of failing to take reasonable care to prevent the company from providing insurance claims forms to an insurer that were not in accordance with the Insurance Act and regulations. He was sentenced to a $9,000 fine.

Jeyakanthan Thivendran, a principal of North York Health and Rehabilitation, pleaded guilty to a charge of failing to take reasonable care to prevent the company from providing insurance claims forms to an insurer that were not in accordance with the Insurance Act and regulations. He was fined $5,000.

FSCO encourages anyone with information about auto insurance fraud to call its anonymous tips line (1-855-5TIP-NOW). The public can also submit anonymous tips to FSCO online through its website.

FSCO investigates allegations of misconduct, unfair practices and non-compliance with legislation or regulations in its regulated sectors. When warranted, FSCO takes enforcement action.

FSCO is an agency of the Ministry of Finance established under the Financial Services Commission of Ontario Act, 1997. It regulates insurance, pension plans, loan and trust companies, credit unions and caisses populaires, co-operative corporations and mortgage brokerages and administrators in Ontario.

As other Insurance Act and related criminal prosecutions remain before the courts, there will be no further comment on the convictions from FSCO.

QUICK FACTS

  • Ontario's Auto Insurance Anti-Fraud Task Force was announced in the 2011 Budget. The Task Force was established in July 2011 and submitted its final report to the government in November 2012, which contained 38 targeted recommendations on four key areas: fraud prevention, detection, investigation and enforcement and regulatory roles and responsibilities.
  • Through amendments to the Insurance Act (Bill 65) in June 2013, the government established the legislative framework for FSCO to license health clinics that invoice auto insurers and regulate their business practices. The licensing and regulation of health clinics was a key Task Force recommendation.
  • In January 2013, the government announced the introduction of regulatory amendments to help prevent auto insurance fraud and abuse, including:
    • Requiring insurers to provide claimants with all reasons for denying a claim.
    • Ensuring claimants are given a detailed, bi-monthly statement of benefits paid out on their behalf.
    • Requiring claimants to confirm attendance at health clinics.
    • Providing FSCO with the authority to stipulate by Guideline the maximum payable by insurers for goods as well as services
    • Banning providers from asking consumers to sign blank claims forms.

LEARN MORE

SOURCE Financial Services Commission of Ontario

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
Organizations do not need a Big Data strategy; they need a business strategy that incorporates Big Data. Most organizations lack a road map for using Big Data to optimize key business processes, deliver a differentiated customer experience, or uncover new business opportunities. They do not understand what’s possible with respect to integrating Big Data into the business model.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, will discuss how they b...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...