If you thought car insurance fraud only happened in the USA, think again. Last week, in the Ontario Court of Justice in Toronto, Canada, Pioneer Rehabilitation Clinic, Inc. pleaded guilty to “…knowingly making false or misleading statements…” to an insurance company, in order to receive payment for goods and services it claimed it had provided.
The court ordered a $50,000 fine, and a conviction. In addition, Pioneer has to pay a surcharge of $12,500 to the Victims Justice Fund.
The charges against Pioneer were filed last August by the Financial Services Commission of Ontario (FSCO) which found that false treatment plans and fake invoices had been submitted in order to get paid for treatments that never occurred.
FSCO’s mission is to investigate allegations of misconduct, non-compliance with laws or regulations, and unfair practices in the industries it regulates. When necessary, FSCO can take enforcement action, and even initiate prosecution. It’s an agency of Canada’s Ministry of Finance, and oversees loan and trust companies, credit unions, pension plans, and mortgage brokerages in Ontario, as well as the insurance industry.