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Follow on Google News | Allstate Files Two Lawsuits in Alleged Fraudulent ActivityAllstate Insurance Company has filed two lawsuits in alleged fraudulent activity, for ~2.7 in possible exposure of claims.
Allstate Insurance Company has filed a declaratory judgment insurance fraud lawsuit against Fortune Medical, P.C., RC Medical, P.C., RLC Medical, P.C., Capri Medical, P.C., Painless Medical, P.C., Exact Medical Services, P.C., and Collins Wellcare Medical, P.C. The suit additionally alleges that the professional medical corporations acted in concert with other individuals: The complaint was filed in the Supreme Court of New York, Nassau County. It alleges that the professional medical corporations filed false documents with the New York State, Department of State, Division of Corporations. It claims that the professional medical corporations lack standing to recover payment from Allstate Insurance Company based upon violations of the Business Corporation Law, which states that a professional medical corporation must be owned and operated by a licensed physician. As detailed in the suit, documentary evidence and sworn testimony will be offered in an effort to prove that the professional medical corporations were truly owned and operated by laypersons, and not a licensed physician. The professional medical corporations submitted several hundred claims to Allstate Insurance Company. The total possible exposure of those claims is over $2,000,000.00. Allstate seeks a declaratory judgment stating that the named medical facilities were fraudulently owned and incorporated, and as such, are not entitled to receive No-Fault benefits. Vista Suit – The total possible exposure of those claims is in excess of $700,000. Allstate Insurance Company has filed an insurance fraud lawsuit against Michael D. Green, M.D., Clifford Beinart, M.D., Asaf Yevdayev, Vista Medical Diagnostic Imaging, P.C., Total Global Medical, P.C., Imaging Associates of Five Boroughs, L.L.C., and Five County Imaging Holdings, L.L.C. The complaint was filed in the United States District Court, Eastern District of New York, alleging that the professional service corporations filed false ownership documents with the New York State, Department of State, Division of Corporations. It claims that the professional service corporations lack standing to recover No-Fault auto insurance benefit payments from Allstate Insurance Company based upon violations of the New York Business Corporation Law, which requires that professional service corporations be owned and operated by a licensed physician or medical professional. As detailed in its lawsuit, Allstate alleges that the professional service corporations were actually owned and operated by laypersons, and not licensed physicians or medical professionals. The professional service corporations submitted numerous claims to Allstate Insurance Company. The aggregate of those claims resulted in payments to the professional service corporations in excess of $700,000 dollars. Allstate seeks reimbursement for the full amount. “Auto insurance fraud cost drivers in New York State over $229 million in 2009,” said NY Field Vice President Bob Holden. “Fraud and lawsuit abuse by medical providers are two of the main reasons for the higher costs consumers pay. In addition to costing millions, this fraud puts the safety of our New York drivers at risk.” The Allstate Corporation is the nation’s largest publicly held personal lines insurer. Widely known through the “You’re In Good Hands With Allstate®” slogan, Allstate is reinventing protection and retirement to help more than 17 million households insure what they have today and better prepare for tomorrow. Consumers access Allstate insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives in the U.S. and Canada, as well as via www.allstate.com and 1-800 Allstate®. End
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