Lansing, MI - On Wednesday, March 13, 2024, five Michigan defendants and one New Jersey man were bound over to stand trial in the 16th Circuit Court in Macomb County on charges alleging the group operated an auto insurance fraud scheme targeting Michigan residents involved in automobile collisions, announced Michigan Attorney General Dana Nessel and Anita Fox, Director of the Michigan Department of Insurance and Financial Services (DIFS).
“We have alleged here a systematic, far-reaching criminal network that we believe was operating a sophisticated insurance fraud scheme for years,” said Nessel. "I am grateful for our partnership with and the efforts of the Department of Insurance and Financial Services’ Fraud Investigation Unit as well as the efforts of investigators and prosecutors within my department.”
“After a lengthy, comprehensive investigation, we are pleased this case is moving forward in court. We appreciate our partnership with the Attorney General to investigate insurance fraud and hold those responsible accountable for their actions,” said DIFS Director Anita Fox. “We are committed to protecting Michiganders from those who seek to exploit people who were in car crashes for their own fraudulent gain. Michiganders who suspect insurance or financial services fraud can report it online or by calling DIFS at 877-999-6442 Monday through Friday from 8 a.m. to 5 p.m.”
It is alleged that, beginning in 2013, Michael Angelo, of New Jersey, ran a lawyer hotline, 1-800-USLawyer, and funneled auto accident callers into an elaborate insurance fraud scheme, directing the callers to one or several of the many medical enterprises owned or controlled by Angelo. Per the allegations, the referred caller would be directed through a predetermined protocol of office visits, device and injection treatments, medication prescriptions, and drug screenings, physical therapy sessions and diagnostic imaging all performed within Angelo’s network of enterprises or those operated by coconspirators. It is alleged that each business then billed the no-fault auto insurance carriers (or the Michigan Assigned Claims Plan for the uninsured patients) for the respective treatments.
Defendants were charged as follows:
Michael Angelo, 61, Springfield, NJ
- One count of Conducting a Criminal Enterprise, a 20-year felony;
- Four counts of False Pretenses $1,000 to $20,000;
- Four counts of Conspiracy to Commit False Pretenses $1,000 to $20,000;
- Six counts of Delivery/Manufacture Controlled Substances (Schedules 1, 2, and 3 Except Marihuana, Methamphetamine, Ecstasy, and Cocaine); and
- Three counts of Insurance Fraud.
Chitra Sinha, 80, Bloomfield
- One count of Conducting a Criminal Enterprise, a 20-year felony;
- Three counts of False Pretenses $1,000 to $20,000; and
- Three counts of Insurance Fraud.
Robert Presley, 49, Ferndale
- One count of Conducting a Criminal Enterprise, a 20-year felony;
- Two counts of Delivery/Manufacture Controlled Substances (Schedules 1, 2, and 3 Except Marihuana, Methamphetamine, Ecstasy, and Cocaine); and
- Two counts of Insurance Fraud.
Mohammed Ali Abraham, 70, Dearborn Heights
- One count of Conducting a Criminal Enterprise, a 20-year felony;
- Three counts of False Pretenses $1,000 to $20,000; and
- Three counts of Insurance Fraud.
Thomas Quartz, 36, Grosse Ile
- One count of Conducting a Criminal Enterprise, a 20-year felony;
- Two counts of Conspiracy to Commit False Pretenses $1,000 to $20,000; and
- Three counts of Insurance Fraud.
Hassan Fayad, 37, Dearborn
- One count of Conducting a Criminal Enterprise, a 20-year felony;
- Three counts of Conspiracy to Commit False Pretenses $1,000 to $20,000; and
- Three counts of Insurance Fraud.
Portions of this investigation were conducted by the Federal Bureau of Investigation, who turned evidence over to state authorities after conclusion of federal review. Further investigative work was conducted by the Michigan Department of Attorney General and the DIFS Fraud Investigation Unit.
The DIFS Fraud Investigation Unit investigates criminal and fraudulent activity related to the insurance and financial markets and works with the Attorney General and law enforcement to prosecute these crimes. Suspected insurance fraud can be reported to DIFS safely, easily and, in most cases, anonymously by calling 877-999-6442 or online by visiting the department’s website.
Please note: For all criminal proceedings, a criminal charge is merely an allegation. The defendant is presumed innocent unless and until proven guilty.