5 Charged in RTD Accident Claims Fraud

Charges were filed today against five alleged members of a phony accident claims ring that bilked the Southern California Rapid Transit District out of an estimated $5 million.

Dist. Atty. Ira Reiner announced the grand theft and forgery charges against two attorneys, a chiropractor, an insurance claims adjuster and an office manager for a chiropractor. Reiner said more charges are expected.

“There may be as many as two dozen attorneys involved,” said Reiner, who blamed the RTD for allowing the scheme to take hold.

“The real fault here lies with the RTD because of their lack of oversight,” he said.

$100,000 per Week

Reiner noted that the RTD, which does not carry insurance, pays all claims from its own public funds.

“The RTD was paying out its own money, public money, and they did not exercise oversight,” he said.

Reiner said the RTD paid out as much as $100,000 per week for 30 to 40 phony claims.

Those charged with various counts of conspiracy, grand theft and forgery are attorney William L. Barnes, 51; attorney J. Bruce Johnson, 40; chiropractor Julius C. Brown, 70; Linda Yvonne Thompson, an insurance claims adjuster, and Eugene Glickman, who manages a chiropractic office.

Reiner said Glickman and Thompson are cooperating with authorities and are expected to plead guilty.

Recovery Unlikely

The investigation, Reiner said, is focusing on claims filed and processed through Leonard J. Russo Insurance Agency, the administrator for claims filed against the RTD. Russo has acknowledged that employees may have been involved.

The scheme, Reiner said, usually began with a real bus accident. The driver, he said, would have passengers fill out cards verifying that they were aboard during an accident. Although only a few might have been injured, the claims agency might submit up to 15 claims using phony names.

Reiner said the claims were paid out at a rate of about $4,500 each. Reiner said it is unlikely that much of the money will be recovered.