Business Services Industry
Allstate Files Civil Lawsuit in New Jersey against Alleged Fraud.
Knight Ridder/Tribune Business News, July, 1999 by Schwaneberg, Robert
Knight Ridder/Tribune Business News
Jul. 30 -- Allstate Insurance Co. filed a $42 million civil lawsuit yesterday, alleging it has been defrauded in more than 6,000 accident claims by a conspiracy of such sophisticated scope that New Jersey's staged-accident mills pale in comparison.
Calling the case "the first of its kind," the company alleged that it was paying bills to a cleverly conceived network of "sham" medical offices where heat treatments were administered by receptionists, therapeutic massages were billed but never given, and doctors lent their names to offices where no physician was ever present.
The company claimed it was the victim of a widespread conspiracy in which chiropractors entered illegal fee-splitting and hidden-ownership...
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