Toledo chiropractic clinic named in lawsuit

Toledo Business Journal, Apr 2008

A Toledo-based chiropractic clinic is included on a list of 66 defendants in a federal fraud lawsuit filed last month in Dallas. The suit alleges deception and coercion were used against people involved in automobile accidents at clinics in Ohio, Texas, Indiana, and Alabama. Dort Street Chiropractic is the Toledo clinic named in this litigation.

Allstate Insurance Company filed the suit in the US District Court for the Northern District of Texas against Chiropractic Strategies Group, Inc., its owner Michael Kent Plambeck, related law office management companies, attorneys, telemarketers, and others involved in the alleged fraud scheme. Allstate seeks in excess of $10 million.

According to the company, the lawsuit was filed following an extensive investigation by Allstate's special investigation unit and seeks reimbursement for the sums Allstate has paid in regard to allegedly fraudulent claims. The lawsuit allegations include violations of the Federal Racketeer Influenced and Corrupt Organizations Act (RICO), for which Allstate seeks treble damages and recovery of its attorney's fees and court costs, in excess of $10 million.

"Insurance fraud is a billion dollar business that costs the average consumer $300 in higher insurance premiums every year," stated Edward Moran, Allstate assistant vice president in charge of the company's special investigation unit."Allstate is aggressively pursuing the fight against insurance fraud to protect consumers and help keep insurance costs down."

According to the 67-page complaint, the accused organization solicits persons who have been involved in motor vehicle accidents through telemarketing, which includes calls from a telemarketing entity the organization operates in Kenner, Louisiana. Allstate contends that the telemarketers promise the prospective patients a free examination and at times falsely represent that they are representatives of "Allstate" or an "insurance company."

The court filing alleges that, once at the clinic, the solicited individuals are often coerced and deceived into treatment through a process the organization calls "conversion." Potential patients are allegedly told they have sustained substantial injuries and require an immediate course of treatment. The complaint further alleges patients are then put through a standardized and unnecessary treatment plan. Once a solicited individual is "converted" into a patient, they are referred to a personal injury law office associated with the organization. The complaint alleges persons working at these law offices often come directly to the clinics to "sign up" patients as clients.

Named in the suit are Michael Kent Plambeck, D.C.; Michael Capobianco. D.C.; Paul Grindstatf, D.C.; Robert Ekin, D.C.; Glen Wilcoxson, M.D.; Randall Thai; Roland G. Toca, II; Angel Juno: Douglas Friedman; Jennifer Giessner; Kim Grindstaff; Charles Mora; Irma Escandon; and attorneys Eugene Mercier, Rodney Sipes, Margaret ingle,Thomas Magelaner, Andrew LuCicero, and Scot Labourdette.

Business entities named in the suit include Chiropractic Strategies Group, Inc.; Media Placement Services, Inc.; Professional Management Group, LLC; Law 0G lice Network, LLC; and associated clinics in Ohio, Texas, Indiana, and Alabama.