NORTHFIELD TOWNSHIP (dpa-AFX) - Allstate Insurance said it is seeking to recover more than $796 thousand from eighteen New York-area defendants.
The complaint, filed in Federal District Court as a Declaratory Judgment/Recovery action, alleges that two medical doctors, along with four laypersons and five lay entities illegally owned and controlled two professional medical corporations allegedly owned on paper by a medical doctor and used them toA submit fraudulent billing to Allstate.
In addition, two other individuals and three other companies were also named as being part of the overall scheme to submit fraudulent bills to Allstate. Since 2003, Allstate has filed thirty-nine fraud lawsuits in New York, seeking nearly $204 million dollars in damages.
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.
Also, the suit contends that Kingscare Medical, P.C. and FOT Hamilton Medical, P.C. were fraudulently incorporated through a scheme using the name of licensed medical doctors, Humphrey Iroku, and Xeumei Qu.
However, those medical entities were actually run by laypersons Sam Yu, Ruilen Weng, Astrid Schneider, and Man Tat Tsui. None of these individuals is a medical doctor and there are also five management companies that were utilized to effectuate this scheme. They are NY Acucare Management Corporation, OMD Management Corporation, Powermark Express, Inc, ABS Marketing & Consulting, Inc. and 268 Management Corp.
Allstate is joined by other insurers and many New York State leaders in its pursuit for comprehensive reform of the no-fault system.
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