NJ, Allstate Bring Claims Of Massive Auto Insurance Fraud

Law360, New York (January 3, 2017, 8:02 PM EST) -- The New Jersey Department of Banking and Insurance and Allstate Insurance Co. on Tuesday accused the criminally convicted owners of several New Jersey chiropractic centers of engaging in a massive fraud scheme involving a host of health care providers, lawyers and others who recruited automobile accident victims to file claims for treatment.

In a 427-page state court complaint, DOBI and Allstate allege Anhuar Bandy and his brother Karim masterminded a sophisticated, widespread personal injury mill involving 78 defendants, including personal injury attorneys, licensed medical professionals, and acupuncture and chiropractic facilities.

The accusations stem from a set of schemes previously uncovered in...

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