Allstate Files $3.8M Medical Fraud Lawsuit

HAUPPAUGE, N.Y., May 17, 2013 /PRNewswire/ -- Allstate Insurance Company is seeking to recover $3.8 million against six physicians and five medical professional corporations in its third insurance fraud lawsuit of 2013. Since 2003, Allstate has filed 47 fraud lawsuits in New York State seeking more than $235 million in damages.

The complaint was filed in the United States District Court for the Eastern District of New York against the following defendants: Targee Medical Services, P.C., Allmed Medical of Williamsburg, P.C., Flatlands Medical, P.C., Michael Alleyne Medical Doctor, P.C., VAS Medical, P.L.L.C., Conrad Robert Williams, M.D., Michael I. Bley, M.D., Barry Alan Dublin, M.D., Michael George Alleyne, M.D., Victor R. Sharobeem, M.D., and Marat Tsirlin, M.D.

It alleges that the defendants routinely submitted fraudulent billing for medical examinations and diagnostic tests that never were performed, were not performed in accordance with basic, legitimate medical standards, and/or were not intended to benefit the patients who purportedly were subjected to them.

According to the Insurance Information Institute, no-fault fraud is costing New Yorkers millions of dollars year-after-year. "In essence, honest hardworking New Yorkers are paying a "fraud tax," said Allison McMahon, Allstate spokesperson. "We need lawmakers to enact meaningful insurance reform that puts the citizens of New York first."

Allstate is joined by other insurers and many New York State leaders in its pursuit for comprehensive reform of the no-fault system.  "The no-fault system is being exploited and responsible citizens are the victims," McMahon said.  "Without the support of lawmakers, incidents of fraud will continue to increase.  We need to work together this legislative session to fix the broken no-fault system."

The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer known for its "You're In Good Hands With Allstate®" slogan. Now celebrating its 80th anniversary as an insurer, Allstate is reinventing protection and retirement to help nearly 16 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