HAUPPAUGE, N.Y., March 14, 2012 /PRNewswire/ -- Allstate
Insurance Company has filed its first insurance fraud lawsuit of
2012, seeking to recover $2 million
dollars against 27 New York
area defendants. The Complaint names multiple physicians,
chiropractors, medical professional corporations, and clinic
lay-owners allegedly used to control the medical professional
corporations, including 18 individual defendants currently under
federal indictment.
The complaint alleges that New
York medical professional corporations known as St. John
Medical Care, P.C., Lenox Wellcare Medical, P.C., CB Chiropractic,
LLC, New Age Orthopedic Rehabilitation, P.C., First Aid Medical
Care, P.C., Rosedale Medical, P.C., TDL Medical, P.C., LDT Medical,
P.C., and West End Chiropractic, P.C., were fraudulently
incorporated through a scheme using the names of licensed medical
physicians and chiropractors, and that lay-owners, none of whom
were physicians, secretly owned and controlled the professional
corporations.
The lawsuit was filed following an investigation by Allstate's
Special Investigative Unit and seeks reimbursement for no–fault
benefits Allstate paid on behalf of its customers during timeframes
specified in the lawsuit. The lawsuit is the latest in a
string of actions taken by the insurer to protect consumers from
these and similar activities. Since 2003, Allstate has filed 37
fraud lawsuits in New York State
seeking more than $ 201 million in
damages.
According to the Insurance Information Institute, the state of
New York is in an insurance fraud
crisis and no-fault fraud is costing New Yorkers millions of
dollars year-after-year in higher premiums. "In essence,
honest, hardworking New Yorkers are paying a 'fraud tax,'" said
Krista Conte, spokesperson for
Allstate's New York office.
"We need lawmakers to enact meaningful insurance reform that puts
the citizens of New York
first."
Allstate is joined by other insurers and many New York State leaders in its pursuit for
comprehensive reform of the no-fault system. "The no-fault
system is being exploited and responsible citizens are the
victims," Conte said. "Without the support of lawmakers,
incidents of fraud will continue to increase. We need to work
together this legislative session to fix the broken no-fault
system."
For more information on the dangers of insurance fraud, and how
you can help fight it, please visit Fraud Costs NY at
www.i-issues.com/new-york
The Allstate Corporation (NYSE: ALL) is the nation's largest
publicly held personal lines insurer known for its "You're In Good
Hands With Allstate®" slogan. Now celebrating its 80th anniversary
as an insurer, Allstate is reinventing protection and retirement to
help nearly 16 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®.
SOURCE Allstate Insurance Company