NJ Clinics Can't Slip Settlement With Allstate In Fraud Case

Law360 (December 5, 2019, 4:52 PM EST) -- A New Jersey clinic owner can’t escape a $718,000 settlement over claims that he bilked the state’s charity care fund after a state appeals court ruled Thursday that disagreements with his former counsel don’t nullify the deal he struck with Allstate Insurance Co., which reported the alleged scheme.

Harshad Patel, owner of AP Surgery Center LLC and AP Diagnostic Imaging Inc., must also pay $145,000 in attorney fees, a two-judge panel ruled, finding Allstate and the Medical Investigation Group were entitled to collect for reporting Patel’s alleged $1 million fraud under the New Jersey False Claims Act.

“Patel specifically told the...

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