Dec 11, 2007 11:00 pm US/Eastern
Pa. Attorney Charged In Insurance Fraud Scheme
PHILADELPHIA (CBS 3) ―
Prosecutors said a Main Line attorney is now taking the fall for decades of phony slip and fall accidents that netted him millions.
Prosecutors said for more than 26 years in his practice, attorney H. Allen Litt made a lot of money from people tripping over cracks in the sidewalk or being hurt in crashes.
However, the problem was, according to District Attorney Lynne Abraham, every one of the more than 300 claims and lawsuits were a fake.
"2.5 million dollars was obtained falsely and fraudulently through these fake insurance accidents," Abraham explained.
Fortunately for her, Abraham claimed Litt was a well-organized thief. He allegedly kept records of more than 100 runners he used, who then recruited fake victims to claim they were injured in falls and accidents.
"The practice of insurance fraud is something that has been long-standing in this city," Abraham said.
Citing one example of how the scheme allegedly worked, Abraham said Litt and his small army of suspects claimed a vehicle was struck by a truck, when in fact they backed it into a pole. Next came claims of injuries, and medical bills followed by a lawsuit.
The alleged fraud so extensive, Abraham compared Litt to the legendary criminal Fagin in the Dickens novel "Oliver Twist."
"H. Allen Litt believed that one thing counted overall and that was aggrandizing himself and making lots of money," Abraham said.
14 others have been charged along with Litt. In addition, at least five other doctors may be arrested.
According to Abraham, if you wonder who paid for all this, you need look no further than those insurance bills you have to pay every month.
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