Allstate Files 32nd Insurance Fraud Lawsuit in 8 Years

Allstate has not been in good hands in New York lately, due to the activities of at least five medical professional corporations.

According to the Insurance Journal, Allstate Insurance Company has filed their fourth insurance fraud lawsuit of 2011 and is seeking to recover $5 million against 10 New York area defendants.

Allstate has filed 31 fraud lawsuits in the state of New York since 2003. They have sought over $170 million dollars in damages.

According to the Insurance Information Institute, hundreds of millions of dollars has been paid year-after-year by New Yorkers for no-fault fraud.

“In essence, honest, hardworking New Yorkers are paying a “fraud tax,” said Krista Conte, spokesperson for Allstate’s New York office.

This new lawsuit alleges that the five medical professional corporations – J.P. Medical P.C, Accurate Medical P.C, Nolia Medical P.C, Quality Medical Healthcare Provider P.C, and CAN Medical P.C. – were fraudulently incorporated through a scheme that used the names of licensed medical physicians, and was secretly owned and controlled by a lay-owner, who was not a physician. Further allegations note that a corporation called Uptown Health Care Management, Inc established a surgery center in the Bronx and a medical clinic in Manhattan which fraudulently billed Allstate.

The lawsuit was filed because of an investigation by Allstate’s Special Investigative Unit. They are seeking reimbursement for personal injury protection benefits that they paid on behalf of their customers during the time frames that are specified in the lawsuit.