Allstate Insurance is seeking to recover more than $1 million against 10 New York area defendants in its third insurance fraud lawsuit of 2011. The complaint, filed under the Racketeer Influenced and Corrupt Organizations Act ("RICO") and New York common law, alleges that four professional service corporations, a licensed psychologist and five laypersons illegally owned and controlled the professional corporations. Since 2003, Allstate has filed 30 fraud lawsuits in New York, seeking nearly $169 million in damages.
As detailed in the lawsuit, Allstate contends that professional service corporations were actually owned and controlled by laypersons, rather than by licensed professionals. In addition, the lawsuit alleges that the defendants submitted or facilitated the submission of claims for psychological services through professional corporations that were never eligible to collect no-fault insurance benefits. The suit contends that HK Psychological, P.C., Kingshwy Psychological, P.C., Omega Psychological, P.C. and Jay Psychological, P.C. were fraudulently incorporated through a scheme using the name of licensed psychologists, and that Ben L. Adler, Alex Gormakh, Milana Gormakh, Peter Kerner and Shari Matatov, none of whom were licensed practitioners, secretly owned and controlled the professional corporations. According to Forbes.com, one of the psychologists whose name was used was aware of the scheme, Allstate says in the suit. Attempts by INN to reach the defendants were unsuccessful at this writing.
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