Friday’s Post May 4, 2012 – In a bid to recuperate over a million dollars, Allstate Auto Insurance issued a lawsuit against sixteen people and healthcare firms it alleges filed auto insurance fraud claims for Personal Injury Payments. The suit claims that sixteen people whom lacked the proper medical expertise, and who filed the fraud paperwork – ran these companies unlawfully. The plot to file false claims involved a chiropractor, another individual, and three healthcare companies that had unlawfully filed articles of incorporation in New York State. The chiropractor was listed as the owner for the three companies. These companies, under his leadership, filled false auto insurance medical claims with the car insurance carrier. The companies, according to the allegations of the car insurance carrier, were owned by a group of people with no medical training. Under New York State law, only licensed individuals are permitted to own these healthcare companies. The Car Insurance Companies lawsuit alleges that a total of eight individuals, working for these companies and colluding in the plot to defraud the Car Insurance Carrier, submitted fraud claims for third party, independent services.

There is also a conflict of interest component to this case.  The referrals made to each of the healthcare companies, were filed by individuals who had a financial stake in the company. Two of the Health Care companies were listed as being incorporated under the ownership of a medical professional, but were in reality being run by a team of two people with no formal medical credentials. The team that ran this company supposedly used two Health Care Management firms in order to facilitate the scheme. The lawsuit  alleges charges such as other illegal referral procedures, and receiving compensation through fraud.  Allstate Car Insurance has been actively pursuing fraud claims cases in New York,  New Jersey, Pennsylvania and Ohio and elsewhere. The car insurance company has filed three-dozen lawsuits in those states alone.

-Mike

Michael E. Dortch
President &  Managing Agent
InsureDirect.com
Corporate Home Office
618 South Broad Street
Lansdale, Pennsylvania  19446
(800) 807-0762  ext. 602