4 Charged in Alleged Car Crash Scam

Four people, including a lawyer, were charged in federal court Wednesday with failing to report more than $5.4 million in income allegedly derived from an auto accident scheme.

David L. Arnopole, 52, an attorney with offices on Wilshire Boulevard and in Monterey Park, was accused of conspiracy and failing to report more than $3.5 million in income.

Not only did he pay people, known as “cappers,” to bring him business, but he also took kickbacks from doctors and medical providers for referring patients to them, according to a court document detailing the allegations.

Although not a federal crime, it is illegal in California and in many other states to refer legal and medical clients for money, a practice known as “capping.”

Arnopole, who specialized in personal injury cases at one time employed more than 20 people, none of them lawyers, at his two offices, said Assistant U.S. Atty. Maurice Suh.

Arnopole could not be reached for comment. A woman who answered the phone at his office said he was ill and not available.

Also accused of income tax violations was Tai Jou Chen, 48, who managed Arnopole’s Monterey Park office. He referred cases to Arnopole in exchange for a percentage of the settlements, according to a grand jury indictment accusing him of failing to report at least $1.6 million in income as well as conspiracy.

Chen is believed to have fled the country. A fugitive warrant has been issued for his arrest.

Lawrence Chu, 39, and Ray Ming Ou, 47, both of whom are physical therapists and partners at the Advanced Medical Group in Monterey Park, were charged with failing to report a total of more than $335,000 in income. They allegedly worked with Arnopole through Chen.

Two administrators at Arnopole’s law firm pleaded guilty last year to filing false income tax returns and are awaiting sentencing.