Allstate Files $3.7 Million Suit Against Fraudulently Owned Professional Medical Corporation

Oct. 21, 2010 - PRLog -- Allstate Insurance Company has filed a $3.7 million insurance fraud lawsuit against Metropolitan Radiological Imaging, P.C. The complaint was filed in the United States District Court, Eastern District of New York.  

The suit alleges that Metropolitan Radiological lacks the necessary standing to recover payments from Allstate Insurance Company. This is based upon alleged violations of the Business Corporation Law, which Allstate maintains “requires any corporation that provides medical services to do so as a professional corporation owned and controlled exclusively by licensed physicians.” Under the “No-Fault Law” a professional corporation is not eligible to recover no-fault benefits if it is not licensed in accordance with applicable New York State law,” the complaint alleges.  

In the suit, Allstate alleges that Metropolitan Radiological was truly owned, controlled and operated by a layperson, not a licensed physician as required under New York State law, and that Metropolitan Radiological submitted numerous claims to Allstate Insurance Company while operating under an alleged “illegal corporate structure” under which it was not entitled to be paid. Additionally, the suit alleges that Metropolitan Radiological acted in concert with at least two other business corporations and individuals, including a medical doctor. Allstate seeks to recover in excess of $3.7 million based on the wrongful conduct alleged in its complaint.

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®.