Allstate Insurance said it has filed a $4 million fraud suit against 20 New York-area defendants involved in eight radiology companies. The complaint specifically cites six physicians and the lay-owned companies allegedly used to run the radiology firms.
Allstate seeks reimbursement for personal injury protection benefits it paid on behalf of its customers during the time frames specified in the suit, according to the insurer.
In its complaint, Allstate alleges that the following companies were fraudulently incorporated through a scheme that used the names of licensed medical physicians, with nonphysician owners secretly controlling the radiology firms:
- A Plus Medical
- Atlantic Radiology
- Atlantic Radiology Imaging
- Aurora Radiology
- Omega Medical Diagnostic
- Oracle Radiology of New York
- Right Aid Diagnostic Medicine
- Shore Medical Diagnostic
The defendants allegedly submitted false claims and MRI reports to Allstate, demanding payment of no-fault benefits, the insurer said. New York has a no-fault law that states that patients can collect directly from their insurance companies for medical and hospital expenses and lost wages, regardless of who was at fault, according to Allstate.
