Allstate Insurance Company, headquartered in Northbrook, Illinois, is seeking to recover $14 million against 111 New York-area defendants. The complaint, filed under the Racketeer Influenced and Corrupt Organizations Act (RICO) and principles of common law, alleges that the defendants engaged in schemes in which fraudulent and misleading bills were submitted to Allstate for durable medical equipment (DME), medical supplies, and orthotic devices.
The complaint specifically cites 49 DME retail companies and 41 individuals who allegedly owned one or more of these retail companies and 16 DME wholesale companies and five individuals who allegedly owned one or more of the wholesale companies.
Among the allegations in the complaint are that the retailers (through their respective individual owners and in conspiracy with the wholesalers and their respective owners) submitted or facilitated the submission of fraudulent and misleading bills and supporting documents to Allstate for reimbursement under New York State’s No-fault Law.
