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.
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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.
It claims that the two are not unable 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 in 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.