Allstate Files $1.1M Insurance Fraud Case in New York

Allstate Insurance is seeking to recover more than $1.1 million from sixteen New York-area defendants in its ninth insurance fraud lawsuit of 2011.

The complaint, filed in Federal District Court, on December 30, 2011, as a Declaratory Judgment/Recovery action, alleges that a chiropractor, along with one layperson and two lay entities illegally owned and controlled three professional medical corporations allegedly owned on paper by a medical doctor and used them to submit fraudulent billing to Allstate.

In addition, four other individuals and four other companies were also named as being part of the overall scheme to submit fraudulent bills to Allstate.

As detailed in the lawsuit, Allstate contends that professional service corporations were actually owned and controlled by laypersons, rather than by licensed medical professionals. In addition, the lawsuit alleges that the defendants submitted claims for services that were performed by independent contractors in violation of the No-Fault Law. There were also incidents of illegal referrals to a person who had a financial interest. The suit contends that B.J.Y. Freeport Medical, P.C., B.Y.,M.D., P.C. and Innovative Medical, P.C. were fraudulently incorporated through a scheme using the name of a licensed medical doctor, Benjamin Yentel, M.D. However, those medical entities were actually run by Stanley Anderson, D.C. and his wife Jill Anderson. Not one of these individuals is a medical doctor. There were also two management companies that were utilized to effectuate this scheme. They were HISLI, Inc. and Steady Management Corp.

Included in this lawsuit are claims for improper self-referral against Mary Jean Palma Endozo and her company Oasis Physical Therapy, P.C. There is also an unjust enrichment claim against Anna Neidorf and her company, Ranj Corporation, Ashraf Hafez and his company Top Rehab Inc as well as Olga Bard and her company Soft Touch Acupuncture, P.C.

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 timeframes specified in the lawsuit.

Since 2007, Allstate has filed thirty-six fraud lawsuits in New York, seeking nearly $199 million in damages.

Source: Allstate Insurance Company