Florida Residents were Convicted by a Federal Jury in March of this Year
GRAND RAPIDS, MICHIGAN -Belkis Soca-Fernandez, 47, and David Sosa-Baladron, 42, of Tampa, Florida, were sentenced to prison in federal court yesterday. A federal jury convicted Soca-Fernandez and Sosa-Baladron in March of this year of health care fraud and conspiracy to commit mail fraud related to a staged automobile accident ring that operated in West Michigan from 2012 to 2015. United States District Judge Paul L. Maloney sentenced Soca-Fernandez to 135 months in prison and Sosa-Baladron to 120 months in prison. When imposing the sentence, Judge Maloney commented that the conduct of the defendants was "an attack on the no-fault automobile insurance system in the state of Michigan that is reliant upon the truth of the claims made." He further commented that the defendants’ scheme was a "brazen scheme of the first order." The court also ordered the defendants to pay restitution of $675,066.96 to the automobile insurance companies that were defrauded.
"This staged automobile accident ring operated a sophisticated fraud over several years in our community," stated Acting U.S. Attorney Andrew Byerly Birge. "The very significant sentences imposed by the court reflect the leadership roles played by Soca-Fernandez and Sosa-Baladron and the fact that they greatly profited from this fraud scheme at the expense of Michigan’s automobile insurance system. My office will continue to vigorously prosecute those who cheat our financial and insurance programs."
The staged automobile accident ring operated three therapy clinics, Revive Therapy Center and HH Rehab Center, in Wyoming, Michigan, and Renue Therapy Center in Lansing, Michigan, from April 2012 to May 2015. The ring recruited and paid cash to individuals to stage automobile accidents and obtain police reports so that insurance claims could be made with their automobile insurance companies. The managers of the clinics and others working with them then told the accident participants what symptoms to present to a physician affiliated with the ring so that she would sign a prescription for physical therapy. The accident participants would then seek unnecessary therapy treatment at the clinics. Typically, after a few therapy sessions, the accident participants would sign blank therapy treatment forms that would be signed by massage therapists to make it appear as if the accident participants were obtaining treatment when they truly were not. The therapy clinics then used the treatment forms to send false insurance claims through the United States mail to automobile insurance companies for therapy treatment that was either not necessary or not actually provided.
"Elaborate insurance fraud schemes like the one perpetrated in this case disrupt the economy and cause law-abiding citizens to pay more for their coverage," said HSI Special Agent in Charge Steve Francis. "HSI is committed to working with our law enforcement partners to bring down organized criminals that have no concern for the law or their affected victims."
"To those that conspire to defraud insurance companies in Michigan, the sentencing of these defendants in this complex staged auto accident scheme should clearly demonstrate that the FBI routinely tracks, identifies, and brings to justice criminals who engage in fraudulent conduct which drives up insurance rates and health care costs for everyone", said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "Similarly, the successful collaboration among Homeland Security Investigations, the FBI and the U.S. Attorney's Office is the norm today as law enforcement at every level is more determined than ever to hold unethical individuals accountable for their illegal conduct."
Soca-Fernandez and Sosa-Baladron are the latest of eight individuals sentenced for their role in the staged automobile accident fraud conspiracy. Previously sentenced were:
• Antonio Ramon Martinez-Lopez, 35, Tampa, Florida, manager of Revive Therapy (87 months’ imprisonment)
• Gustavo Acuna-Rosa, 30, Versailles, Kentucky, manager of Renue Therapy (32 months’ imprisonment)
• Yoisler Herrera-Enriquez, 31, Wyoming, Michigan, manager and massage therapist, H&H Rehab (57 months’ imprisonment)
• Eduardo Pardo-Oiz, 35, Nashville, Tennessee, recruiter and accident participant (2 months’ imprisonment)
• Dolis Rojas-Lopez, 31, Wyoming, Michigan, recruiter and accident participant (3 years’ probation)
• Yosvany Gonzalez-Duran, 42, Lansing, Michigan, recruiter and accident participant (1 year probation)
The Department of Homeland Security, Homeland Security Investigations, and the Federal Bureau of Investigation, in Grand Rapids, Michigan, conducted the investigation of the case. Assistant United States Attorneys Ronald M. Stella and Timothy VerHey handled the prosecution and trial.
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Source: U.S. Department of Justice, Office of the United States Attorneys
