New York City Police Commissioner Raymond W. Kelly and
Queens District Attorney Richard A. Brown today announced the arrest of attorney
Sergey Khaitov, 37, who initiated a scam which attempted to defraud insurance
companies of more than one million dollars. Mr. Khaitov is an attorney licensed
to practice law in New York State.
Commissioner Kelly said: "As an
attorney and an officer of the court, Mr. Khaitov's behavior is particularly
egregious. Mr. Khaitov used his position to submit fraudulent insurance claims
for his own benefit. This
case should send a message that no one is above the
law and anyone involved in these types of acts will be pursued and prosecuted. I
commend the officers who participated in this investigation; they did
This arrest is the direct result of the
Fraudulent Accident Investigation Squad, North's (FAISN) Operation "AquaFraud."
This operation began in December of 2003 when representatives from
Insurance Company Special Investigative Unit contacted FAISN regarding
suspicious billing from Prime GBK Pain Management and Acupuncture Pain
Management. The two companies billed for a treatment called
fictitious medical provider names and stolen doctor identities.
traced the various fraudulent entities back to Sergey Khaitov who practiced law
in Queens. Mr. Khaitov employed a network of Post Office boxes and several bank
accounts to collect on the ficticious medical bills.
As of today, 19
insurance companies have been identified as victims of this scheme. Many of
these firms are still calculating the financial impact of the fraud. The current
numbers amount to over one million
dollars in fraudulent billing with
approximately three hundred thousand dollars of that paid out. Once all the
insurance companies involved have tabulated their losses, these numbers are
expected to substantially
Khaitov was charged with five
counts of Insurance Fraud 2, two counts of Grand Larceny 2, two counts of Grand
Larceny 3 and four counts of Insurance Fraud 3.