California Chiropractic Association Loses 4-Year Suit CALIFORNIA: On Thursday, Oct. 20, the San Diego Superior Court ruled in favor of American Specialty Health Plans of California. Inc. and American Specialty Health Networks. Inc.. granting judgment on all claims filed against them by the California Chiropractic Association in 2001. The CCA's, complaint originally included 18 causes of action and challenged essentially every feature of American Specialty Health Plans of California, or ASHP's, and American Specialty Health Networks, or ASHN's, managed care practices, contending that such activities were unfair, unlawful and fraudulent. CCA sought millions of dollars in restitution and injunctions that would have shut down many aspects of ASHP's and ASHN's business. San Diego Daily Transcript Insurer Tries to Avoid Paying Claims—Again CALIFORNIA: UnumProvident Corp.. the nation's largest disability insurer, systematically sought ways to avoid paying claims to millions of California customers, a lawsuit claims. The lawsuit, filed in the final days of October in Superior Court by policyholdcrs, seeks class-action status. It comes less than a month after the company was ordered to pay an $8 million fine to settle similar charges against the company by state insurance regulators. The lawsuit seeks billions of dollars in premium refunds and damages for denied claims. The suit also names UnumProvident subsidiary Paul Revere Life Insurance Co. The lead plaintiff in the case is former Berkeley chiropractor Joan Hangarter. who, you may recall, won a unanimous $7.7 million federal jury award after she became disabled by tendinitis and Paul Revere denied her benefits. Attorney Ray Bourhis says he expects the settlement with state officials to boost his case against the Chattanooga, Tennessee-based insurer, which settled similar allegations with 48 other states last year. But a spokesperson for UnumProvident says the previous California settlement should foreclose the new claims. "We find this latest complaint completely without merit and believe the recent settlement with California makes Mr. Bourhis' charges moot." she says. The Associated Press Crime DEFINITELY doesn't pay! PENNSYLVANIA: A chiropractor who staged fake accidents, burned down a competitor's clinic, and submitted S7 million worth of phony insurance claims was sentenced in late October to five years in prison. Dr. Joseph Davidson pleaded guilty to racketeering in June. Authorities said the case represented one of the first uses of the racketeering law, which carries substantial penalties, against a chiropractor. Davidson admitted he bilked insurers on a massive scale from 1995 to 2001 at each of his 4 clinics. In addition to the prison sentence. Davidson was also ordered to pay $7 million restitution. An Assistant U.S. Attorney said two chiropractors who worked with Davidson became "so appalled at the blatant nature of the fraud that they began working with the FBI as sources." Allstate Insurance Co. has also won a related $6 million judgment against Davidson. Davidson also admitted that he paid a codefendant from New York to arrange the staged accidents and paid him to burn down a competitor's clinic in 1998. Two other doctors pleaded guilty to fraud in the case. Christopher Boucher was sentenced to a year and a day in prison. Brian Torchin is scheduled to be sentenced in February. Inquirer Bad Botox Doc Pleads Guilty to Avoid Trial FLORIDA: Bach McComb. the doctor with a suspended license who paralyzed himself, his girlfriend, and Dr. Eric Kaplan and his wife. Bonnie, a year ago, pleaded guilty in early November to federal charges of administering unapproved drugs. Instead of the 20 years he could have received had the case gone to trial. McComb faces up to three years in prison when he's sentenced on Jan. 26. "My wife Bonnie and I are outraged by the statements made by McComb at his plea agreement last Thursday," says Dr. Kaplan. Kaplan said McComb's statements are untrue that they were friends who knew they weren't getting brand-name Botox at a Broward County clinic. Yahoo! News Late Breaking News! Dr. Traina Steps Down as President of Northwestern MINNESOTA: Northwestern Health Sciences University will be embarking on a national search for a president following the resignation of Alfred Traina. DC. president of Northwestern, on Nov. 14. Dr. Traina is stepping down from the presidency effective Sept. 1. 2006. due to personal health issues. Mark Zeigler, DC, chair of the University's Board of Trustees, will direct the search for Dr. Traina's replacement.I Pass on the information to warn other D. C. 's about events that are really happening to chiropractors. When you see a " yellow page " article in your local, regional, or national newspaper about chiropractic or a fellow chiropractor, fax, e-mail or mail it to us at TAC. For further information, fax: 1-505- 716-9212 or see page 4 for our mailing address.
