Nature of the Case
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Facts
Teitler and Schultz (Ds) were attorneys at a law firm that defrauded insurance companies by manipulating claims arising out of auto accidents. Their method of operation included the use of false documents and perjury by the firm's clients in order to inflate injuries and expenses so as to obtain better settlements from insurance companies. They created false medical bills, submitted false affidavits to document housekeeping services that were never rendered and lost wages that were never earned. They referred clients to doctors who provided backdated bills and exaggerated medical reports and procured false testimony at trials and examinations before trial. Teitler and Maureen Murphy even tried to procure false testimony before the grand jury. Teitler was convicted of mail fraud and RICO. Schultz was a trial lawyer who worked as an associate for the firm from July 1978 until February 1983, and he was charged with encouraging and counseling perjury and mail fraud. Schultz was convicted of two counts of mail fraud and RICO.
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