Allstate Insurance files complaint against Long Island radiology practice

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Allstate Insurance files complaint against Long Island radiology practice

por John R. Fischer, Senior Reporter | November 05, 2018
Insurance
Allstate Insurance is requesting a trial
by jury in a complaint made against
Diagnostic Rockville Centre
Allstate Insurance is looking to take radiology practice Diagnostic Rockville Centre to court over allegations of fraudulent charges amounting to more than $1 million.

The insurance provider and its associated entities, Allstate Indemnity, Allstate Property & Casualty Insurance and Allstate Fire and Casualty Insurance filed a complaint this past month in the U.S. District Court for the Eastern District of New York, accusing the Long Island-based practice of fraud and other crimes, reported Legal NewsLine.

The company alleges that two of the practice’s centers, Rockville Centre Diagnostic Imaging and Diagnostic Imaging of Rockville Centre were "unlawfully managed and controlled by one or more non-physicians” who submitted “hundreds of fraudulent and/or non-compensable charges for diagnostic radiology services," to Allstate.

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It claims that the two are not eligible to legally seek or collect no-fault benefit payments but did so anyway by manipulating Allstate Insurance into making no-fault payments of $1.3 million.

In a similar case, a California radiologist was convicted on charges of fraud and bribery by a federal jury last year, along with two of his companies, for taking kickbacks in exchange for patient referrals, and then illegally billing insurance companies for what amounted to more than $25 million all together.

Allstate Insurance is seeking actual and consequential damages and any other relief deemed just by the court.

They have requested a trial by jury, and are represented by Richard D. King Jr., Nathan A. Tilden, Michael W. Whitcher, Shauna L. Sullivan and Jasmine G. Vieux of Smith & Brink PC in Garden City, New York.

The complaint was filed October 18.

Allstate did not respond for comment.

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