Ex-Steinger, Iscoe lawyer sues, claims firm involved in medical fraud - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Advertise
    • Contact
    • Editorial Staff
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Newswires
Newswires RSS Get our newsletter
Order Prints
August 12, 2014 Newswires
Share
Share
Tweet
Email

Ex-Steinger, Iscoe lawyer sues, claims firm involved in medical fraud

Jane Musgrave, The Palm Beach Post, Fla.
By Jane Musgrave, The Palm Beach Post, Fla.
McClatchy-Tribune Information Services

Aug. 12--A well-known personal injury law firm is being accused by a former employee of sending its clients to unscrupulous doctors who conduct unnecessary and expensive tests to spur insurance companies to pay up.

Once nervous insurers agree to settle the artificially inflated claims, attorneys at Steinger, Iscoe & Greene lie to the same medical professionals by understating the amount of the settlements so the law firm can pocket more profits.

The elaborate -- and clearly illegal -- scheme is outlined in a federal whistleblower lawsuit filed last month by former Steinger attorney Hilary Chulock.

The claims are nothing more than an attempt by Chulock to extort money from the West Palm Beach-based law firm, said attorney Mike Pike, who is representing the firm that uses advertising to tout eye-popping awards it claims to have helped clients win.

"She's a former angry employee looking to the win the lottery because she was fired for cause," Pike said. "Her treasure trove is Steinger, Iscoe & Greene."

Chulock's allegations are so scurrilous that the firm with eight locations in Florida and one in California asked U.S. District Judge William Dimitrouleas to remove the lawsuit from public view. Dimitrouleas refused.

But, Pike predicted, the lawsuit eventually will be dismissed. When Chulock accepted a job in the firm's Fort Lauderdale office last year, she agreed that any employment disputes would be resolved by arbitration, not a court fight.

As a lawyer, Pike said, Chulock knows she can't sue the firm in federal court, particularly since the American Arbitration Association already is considering her claims.

"Because Chulock saw her long sought prey -- (Steinger, Iscoe & Greene) -- slipping from her desired grasp in arbitration, she then filed this action in federal court for no other reason but to forum shop and attempt to force (the firm) to settle the case or she would make the allegations public," he said.

In her lawsuit, Chulock said she signed the mandatory arbitration agreement under duress. Three months after she began working for the firm that is in a legal battle with the Florida Bar over its billboard, television and radio ads that trumpet how much it has won for clients, she was told she would be fired immediately if she didn't agree to the terms.

It wasn't until later that she discovered the firm's disturbing business model: "The firm had made collusive agreements with several medical providers ... the medical providers would give clients 'favorable' diagnoses and would relate them to the accidents alleged by the firm, even if they were not."

While the arrangement worked well for the medical providers and the firm, Chulock said clients weren't as lucky. "Oftentimes, the clients would end up in worse physical condition due to the unnecessary surgeries and treatment," she wrote. "Most of the clients were indigent and were without insurance, making them the perfect victims for this criminal and unconscionable conspiracy."

Further, she said, often the clients received no compensation for their injuries. "In the meantime, the firm unlawfully profited from the calculated misrepresentations made to all involved," she wrote.

Chulock said she was fired after four months on the job when she stumbled upon another lucrative part of the operation. When she settled a case for $335,000, she learned her bosses had ordered her legal assistant to tell the physicians who treated the client that the insurer had agreed to pay $85,000. When she voiced her concerns to her bosses, Sean Greene and William McAfee, they turned the tables on her, she says.

They claimed she, not Greene, told the legal assistant to misrepresent the settlement to the doctors and "negotiate them down" on their fees. She was terminated immediately.

In addition, Chulock claims she was the victim of gender discrimination in what she described was a male-dominated law firm that operated like an "all boys club."

Pike insisted that Chulock's claims are specious. "She was unable to handle various cases, which led to her lack of performance and her termination," he said.

He said there is no criminal investigation underway into the firm's practices. Nor, he said, will there be. Instead, he said, he is considering suing Chulock for making false claims.

"Ms. Chulock decided to make these allegations public in an effort to scare Steiner & Iscoe into settling," he said. "That is why she made such false and meritless allegations."

___

(c)2014 The Palm Beach Post (West Palm Beach, Fla.)

Visit The Palm Beach Post (West Palm Beach, Fla.) at www.palmbeachpost.com

Distributed by MCT Information Services

Wordcount:  752

Newer

BRIEF: SCSU names new public safety director

Advisor News

  • Global economic growth will moderate as the labor force shrinks
  • Estate planning during the great wealth transfer
  • Main Street families need trusted financial guidance to navigate the new Trump Accounts
  • Are the holidays a good time to have a long-term care conversation?
  • Gen X unsure whether they can catch up with retirement saving
More Advisor News

Annuity News

  • Pension buy-in sales up, PRT sales down in mixed Q3, LIMRA reports
  • Life insurance and annuities: Reassuring ‘tired’ clients in 2026
  • Insurance Compact warns NAIC some annuity designs ‘quite complicated’
  • MONTGOMERY COUNTY MAN SENTENCED TO FEDERAL PRISON FOR DEFRAUDING ELDERLY VICTIMS OF HUNDREDS OF THOUSANDS OF DOLLARS
  • New York Life continues to close in on Athene; annuity sales up 50%
More Annuity News

Health/Employee Benefits News

  • Council insurance bid to be discussed at Monday meeting
  • 'We have failed': Murkowski, Sullivan call for compromise after Democratic proposal to extend health care subsidies stalls
  • New Findings on Mental Health Diseases and Conditions Discussed by Researchers at Community Care Behavioral Health Organization (Effectiveness of Value-Based Payment and Assertive Community Treatment to Reduce Psychiatric Hospitalizations): Mental Health Diseases and Conditions
  • Findings from Dartmouth College Geisel School of Medicine Has Provided New Information about Managed Care (The association between local hospital segregation and hospital quality for medicare enrollees): Managed Care
  • Congress stalls on health insurance subsidies, Idahoans have week to enroll on exchange
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • PROMOTING INNOVATION WHILE GUARDING AGAINST FINANCIAL STABILITY RISKS ˆ SPEECH BY RANDY KROSZNER
  • Life insurance and annuities: Reassuring ‘tired’ clients in 2026
  • Reliance Standard Life Insurance Company Trademark Application for “RELIANCEMATRIX” Filed: Reliance Standard Life Insurance Company
  • Jackson Awards $730,000 in Grants to Nonprofits Across Lansing, Nashville and Chicago
  • AM Best Affirms Credit Ratings of Lonpac Insurance Bhd
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Slow Me the Money
Slow down RMDs … and RMD taxes … with a QLAC. Click to learn how.

ICMG 2026: 3 Days to Transform Your Business
Speed Networking, deal-making, and insights that spark real growth — all in Miami.

Your trusted annuity partner.
Knighthead Life provides dependable annuities that help your clients retire with confidence.

Press Releases

  • SandStone Insurance Partners Welcomes Industry Veteran, Rhonda Waskie, as Senior Account Executive
  • Springline Advisory Announces Partnership With Software And Consulting Firm Actuarial Resources Corporation
  • Insuraviews Closes New Funding Round Led by Idea Fund to Scale Market Intelligence Platform
  • ePIC University: Empowering Advisors to Integrate Estate Planning Into Their Practice With Confidence
  • Altara Wealth Launches as $1B+ Independent Advisory Enterprise
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Advertise
  • Contact
  • Editorial Staff
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2025 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet