Allstate Seeks To Recover $1.4 Million Based Upon Fraudulent Billing Scheme

Allstate – Oct. 28, 2010

A lawsuit filed today by Allstate Insurance Company details a no-fault scheme that included the submission of thousands of fraudulent charges to the company, using a series of medical professional corporations that were secretly owned and controlled by non-physicians. In the lawsuit, Allstate seeks to recover from the defendants more than $1.4 million in compensatory and treble damages under the federal RICO statute and New York common law as well as $1 million in punitive damages.

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Our Reform Agenda

  1. Encourages fast and fair dispute settlements
  2. Supports adequate time for fraud investigations
  3. Institutes tougher penalties for insurance fraud
  4. Combats excessive medical charges