A recent indictment filed in the Southern District of New York has revealed a widespread fraud scheme involving staged slip-and-fall accidents and fraudulent lawsuits. This case highlights the importance of whistleblowers in exposing complex fraud operations that victimize businesses and insurance companies.
The Fraud Scheme
According to the indictment, from January 2013 to April 2018, five defendants allegedly orchestrated an elaborate scheme to defraud businesses and insurance companies through staged slip-and-fall accidents. The defendants are accused of attempting to defraud victims of at least $31,791,000 through this operation. Key aspects of the scheme included:
- Recruiting individuals to stage slip-and-fall accidents at specific locations in New York City
- Directing recruited patients to claim injuries and seek medical treatment
- Filing fraudulent lawsuits against property owners and insurance companies
- Instructing recruited patients to undergo unnecessary medical treatments and surgeries
- Using legal funding companies to pay for medical and legal fees
The Defendants
The indictment names five defendants as key players in this fraud scheme:
- Peter Kalkanis - Alleged organizer and leader, former chiropractor
- Bryan Duncan - "Runner" who helped recruit patients
- Kerry Gordon (a.k.a. "Curry") - "Runner"
- Robert Locust - "Runner"
- Ryan Rainford (a.k.a. "Ace") - "Runner"
These individuals allegedly worked together to recruit patients, transport them to appointments, identify accident sites, and coach patients on faking injuries.
Legal Charges
The defendants face multiple charges, including:
- Conspiracy to commit mail and wire fraud
- Mail fraud
- Wire fraud
- Aggravated identity theft (Kalkanis only)
If convicted, the defendants could face significant prison time and financial penalties. The indictment also includes forfeiture allegations, seeking to recover proceeds from the fraudulent scheme.
Implications for Whistleblowers
This case underscores the critical role whistleblowers play in exposing complex fraud schemes. Individuals with inside knowledge of similar operations in the healthcare, legal, or insurance industries could potentially file qui tam lawsuits under the False Claims Act, helping to recover taxpayer funds and combat fraud. At The Whistleblower Advocates, we specialize in representing individuals who come forward with information about fraud against the government. If you have knowledge of similar schemes or other types of fraud, our managing attorney Edward Kang and our experienced team can guide you through the process of becoming a whistleblower and potentially receiving a reward for your information. Remember, whistleblowers are protected by law from retaliation, and their actions can lead to significant recoveries for taxpayers while holding fraudsters accountable. If you have information about fraud or false claims against the government, contact The Whistleblower Advocates today for a confidential consultation.
