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Allstate Insurance files fraud claim to recover $4.5m

Allstate Insurance Company, a publicly held personal insurer in the US, has filed an insurance fraud claim against 23 New York-area defendants, seeking to recover $4.5m.

The complaint specifically cites five medical doctors, seven chiropractors and ten professional medical corporations along with one non professional in a scheme.

The complaint alleges that two New York medical professional corporations – Cambridge Medical PC and Pine Hollow Medical PC- were fraudulently incorporated through a scheme using the names of licensed medical physicians when a lay-owner actually controlled the firm.

Allstate’s counterclaims and third party complaint further allege that these corporations fraudulently billed Allstate Insurance Company.

Since 2003, Allstate has filed 32 fraud lawsuits in New York State, seeking more than $175m 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.