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Allstate files fraud lawsuit to recover $5M from 10 NY defendants

Allstate Insurance Company, a publicly held personal insurer in the US, has filed an insurance fraud lawsuit against 10 New York-area defendants, including a surgery center management company, seeking to recover $5m.

The complaint specifically cites one physician, five medical professional corporations, one corporation, and three non-physician individuals.

The complaint alleges that five New York 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 using the names of licensed medical physicians when a lay-owner actually controlled the firm.

Allstate’s complaint further alleges that a corporation – Uptown Health Care Management, Inc. – established a surgery center in the Bronx and a medical clinic in Manhattan which fraudulently billed Allstate Insurance Company.

The company is seeking reimbursement for personal injury protection benefits Allstate paid on behalf of its customers during time frames specified in the lawsuit.

Since 2003, Allstate has filed 31 fraud lawsuits in New York State, seeking more than $170m 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 hundreds of millions of dollars year-after-year.