Allstate (ALL) Uncovers Alleged Insurance Fraud Scheme Against Global Medical Billing
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Allstate Insurance Company (NYSE: ALL) today filed a complaint in the United States District Court, Eastern District, Southern Division against Global Medical Billing, Sterling Heights, Mich., alleging insurance fraud, misrepresentation and unjust enrichment. Allstate seeks to recover the monies paid to the defendants that exceed $380,000 plus exemplary damages, including attorneys' fees and treble damages for a claim under RICO, the Racketeer Influenced and Corrupt Organizations Act.
The alleged scheme involves solicitation of persons who have been involved in motor vehicle accidents, sending them to medical clinics under the control of non-medical personnel who directed medical care. The complaint alleges the employed physicians ordered unnecessary services, including physical therapy and transportation, as well as unnecessary testing.
"Allstate is aware of the economic pressures consumers are facing today. Insurance fraud adds to the cost of the product for everyone. Allstate is aggressively pursuing the fight against insurance fraud to protect consumers and help keep insurance costs down," said Jim Murray, Allstate assistant vice president in charge of the company's Special Investigation Unit.
Also named in the suit are Amanda Bazzi aka Amale Makki Bazze; James Beale, D.O.; Fatemah Chehab; Vinod Joshi; Irwin Lutwin, D.O.; Sue Mackie; Hala Makki; Sean Murdock; Andrea Pennington, D.O.; Sundraram S. Pillai; Terry Reznick, D.O.; T.H. Rizvi; Selma Sheik; First Global Medical Supply; Get Well Medical Transportation; Medical Evaluation And Testing; Medical Evaluations, PC; Progressive Therapy; and Rehab Associates, Inc.
The alleged scheme involves solicitation of persons who have been involved in motor vehicle accidents, sending them to medical clinics under the control of non-medical personnel who directed medical care. The complaint alleges the employed physicians ordered unnecessary services, including physical therapy and transportation, as well as unnecessary testing.
"Allstate is aware of the economic pressures consumers are facing today. Insurance fraud adds to the cost of the product for everyone. Allstate is aggressively pursuing the fight against insurance fraud to protect consumers and help keep insurance costs down," said Jim Murray, Allstate assistant vice president in charge of the company's Special Investigation Unit.
Also named in the suit are Amanda Bazzi aka Amale Makki Bazze; James Beale, D.O.; Fatemah Chehab; Vinod Joshi; Irwin Lutwin, D.O.; Sue Mackie; Hala Makki; Sean Murdock; Andrea Pennington, D.O.; Sundraram S. Pillai; Terry Reznick, D.O.; T.H. Rizvi; Selma Sheik; First Global Medical Supply; Get Well Medical Transportation; Medical Evaluation And Testing; Medical Evaluations, PC; Progressive Therapy; and Rehab Associates, Inc.
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