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Allstate Files $5 Million Insurance Fraud Case in New York

Allstate Insurance Company is seeking to recover $5 million against 10 New York area defendants in its fourth insurance fraud lawsuit of 2011. Since 2003, Allstate has filed 31 fraud lawsuits in New York State, seeking more than $170 million in damages.

According to the Insurance Information Institute, no-fault fraud is costing New Yorkers hundreds of millions of dollars year-after-year. “In essence, honest, hardworking New Yorkers are paying a “fraud tax,” said Krista Conte, spokesperson for Allstate’s New
York office.

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, and secretly owned and controlled by a lay-owner. Further allegations say a corporation – 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 following an investigation by Allstate’s Special Investigative Unit and seeks reimbursement for personal injury protection benefits Allstate paid on behalf of its customers during time frames specified in the lawsuit.

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Written by lordsinsurancelog

September 7, 2011 at 9:59 am

Posted in Insurance News