An insurance company has added a third name to its list of New York plaintiff-side personal injury firms that allegedly conspire with doctors, litigation funders and case referral sources to form a cartel that profits from staged accidents at construction sites.
Insurers Tradesman and Roosevelt Road Re filed a lawsuit on Friday under the Racketeer Influenced and Corrupt Organizations Act in the U.S. District Court for the Eastern District of New York against law firm Wingate Russotti Shapiro Moses & Halperin, alleging it is part of a “widespread fraud scheme” that includes “runners” who recruit construction workers to falsify or exaggerate injures at jobs sites, litigation funders who loan the workers money for legal representation, and medical providers who allegedly provide unnecessary treatments to maximize settlement and workers compensation payouts.
