The
Comment of the Week centres on what one reader sees as paltry penalties for insurance fraud, at the same time calling for stiffer fines and mandatory repayments.
The article,
Rehab clinics fined the maximum $100,000, described the three Toronto-area rehabilitation clinics that were convicted of multiple offences resulting from joint investigations by the
Insurance Bureau of Canada Investigative Services, multiple insurers, police, and the Financial Services Commission of Ontario.
Although fined the maximum allowable under the law, insurers paid out an estimated $4 million in fraudulent claims as a result of the widespread scam – which struck one reader as the punishment not fitting the crime.
“Do these people have to pay back the millions of dollars that they scammed from the insurers?” asked Leslie. “If not, then they made millions and were fined $100,000. Not a bad profit margin. To be a deterrent, the penalty needs to out-weigh the reward. Not so sure that happened in this case. The fact that they were caught is a start to deter others but stiffer penalties and a requirement to pay back the wronged parties is also needed.”
The clinics involved included the Physiotherapy Clinic of Scarborough, a registered company with the director at the time of the offence Nishanthan Ponnuthurai pleading guilty on behalf of the clinic to making false statements; and the McCowan Rehabilitation Clinic of Toronto. (continued.)
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In the McCowan decision, it was found guilty on counts of knowingly making a false or misleading statement to an auto insurer to obtain payment for goods and services provided to an insured and engaging in unfair or deceptive acts or practices. The clinic was sentenced to the maximum fine at the time of the offence of $100,000 on each count. The Crown also asked for full restitution for the victim insurers.
While the request was not entirely granted, a significant restitution order in excess was imposed of $120,000.
