Allstate Insurance Company Files $2.9 Million Medical Fraud Case Against Fraudulent Medical Corporations

NEW YORK, Nov. 17, 2010 /PRNewswire/ -- As detailed in a lawsuit filed today, its sixth this year, Allstate Insurance Company seeks to prove that professional service corporations were actually owned and operated by a layperson, rather than by licensed physicians or medical professionals. Allstate is committed to fight insurance fraud in New York and has sought to recover damages totaling $9,899,093.56 during 2010.  Since 2003, Allstate has filed 23 fraud lawsuits in New York, seeking damages totaling $144,258,263.56.

Allstate filed this latest lawsuit against Robert David Solomon, M.D., Charles Leo Cooper, M.D., Natalia Gurevich, M.D., Aviyon Medical Rehabilitation, LLC, Primavera Medical Rehabilitation, PLLC, Competent Medical Rehabilitation, PLLC, Trastevere Medical Rehabilitation, PLLC, Dr. Natalia Gurevich Medical, P.C., Main Diagnostic Medical, P.C., Sharp Imaging Radiology, P.C., Sharp Radiology, P.C., Rapid Scan Radiology, P.C., Snoop Radiology Imaging, P.C., Arthur Bogoraz and Matthew Abramowitz. The complaint was filed in the United States District Court, Eastern District of New York, alleging that the professional service corporations filed false ownership documents with the New York Department of State, Division of Corporations. The complaint claims that the professional service corporations lack standing to recover no-fault auto insurance benefit payments from Allstate Insurance Company based upon violations of the New York Business Corporation Law, which requires that professional service corporations be owned and operated by a licensed physician or medical professional.  

As detailed in its lawsuit, Allstate intends to prove that the professional service corporations submitting numerous claims to Allstate Insurance Company were actually owned and operated by layperson Arthur Bogoraz, instead of licensed physicians or medical professionals. The aggregate of those claims resulted in payments to the professional service corporations in excess of $2.9 million dollars. Allstate seeks reimbursement for the full amount.

"Allstate is aware of the economic pressures that consumers face, said Jim Murray, Allstate Assistant Vice President in charge of the company's Special Investigation Unit.  "Insurance fraud adds to the cost of the product, and Allstate is aggressively pursuing the fight against insurance fraud to protect consumers and help keep insurance costs down."  

The Allstate Corporation is the nation's largest publicly held personal lines insurer. Widely known through the "You're In Good Hands With Allstate®" slogan, Allstate is reinventing protection and retirement to help more than 17 million households insure what they have today and better prepare for tomorrow. Consumers access Allstate insurance products (auto, home, life and retirement) and services through Allstate agencies, independent agencies, and Allstate exclusive financial representatives in the U.S. and Canada, as well as via www.allstate.com and 1-800 Allstate®.

SOURCE Allstate Insurance Company