Allstate Insurance Co. is seeking to recover $6.3 million against 83 New York-area defendants in its seventh insurance fraud lawsuit of 2011. The complaint, filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) and principles of common law, alleges that the defendants engaged in separate, but parallel, schemes in which fraudulent and misleading bills were submitted to Allstate for durable medical equipment, medical supplies and orthotic devices.
The complaint specifically cites 30 durable medical retail equipment companies and 25 individuals who allegedly owned one or more of these retail companies and 18 durable medical wholesale companies and 10 individuals who allegedly owned one or more of the wholesale companies. Since 2003, Allstate says it has filed 34 fraud lawsuits in New York State seeking more than $185 million in damages.
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