Allstate Alleges $30M Insurance Fraud, Demands NY Reform

Law360, New York (May 11, 2012, 1:32 PM EDT) -- Allstate Insurance Co. said Friday it has filed a $30 million fraud lawsuit against numerous New York doctors, attorneys  and medical clinics it accuses of using the state's no-fault automobile insurance law to orchestrate a "massive and sophisticated scheme."

All the individuals have been criminally indicted in connection with an alleged $279 million scam the FBI disclosed earlier this year. According to federal prosecutors, a network of legal and medical professionals recruited vehicle accident victims to receive unnecessary medical treatments and used the reimbursements to buy...
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