Nesly Loute NAPLES, FL -
Naples man found guilty in connection to insurance fraud scheme Posted: Sep 30, 2016 3:36 PM EST Updated: Sep 30, 2016 3:36 PM EST
A Naples man was found guilty of conspiracy to commit mail fraud.
Nesly Loute, 52, of Naples, FL was found guilty of conspiracy to commit mail fraud. He is the sixth person to be convicted following a two-year federal and state investigation dubbed "Operation Fraudulent Pain."
According to testimony during the six-day trial, Loute conspired with others to operate an unlicensed chiropractic clinic and bill automobile insurance companies for Personal Injury Protection benefits.
Members of the conspiracy participated in staged motor vehicle accidents and then submitted claims to automobile insurance companies for PIP benefits based on those fake accidents. More than $1 million in fraud proceeds were withdrawn from various bank accounts and through the use of a shell corporation.
The investigation disrupted five unlicensed chiropractic clinics that received more than $2 million in ill-gotten PIP payments from automobile insurance companies.
Loute faces a maximum penalty of 20 years in federal prison. In addition, he must pay restitution to the victim automobile insurance companies and forfeit the proceeds to the offense.