Posted on 13 Jul 2011
New York-based insurance company Allstate sued 10 defendants alleging more than $1 million in damages.
The company filed a complaint under the civil RICO statute and alleged certain individuals illegally owned and operated four professional service corporations and fraudulently submitted claims for professional services that were not eligible for reimbursement under no-fault insurance provisions.
The insurer said that HK Psychological; Kingshwy Psychological; Omega Psychological; and Jay Psychological were fraudulently incorporated through an alleged scheme using the name of licensed psychologists. It also said Ben L. Adler, Alex Gormakh, Milana Gormakh, Peter Kerner and Shari Matatov, none of whom were licensed practitioners, secretly owned and controlled the professional corporations.
The suit also alleges that the defendants submitted or facilitated the submission of claims for psychological services through professional corporations that were never eligible to collect no-fault insurance benefits.
The lawsuit, Allstate third insurance fraud lawsuit this year, seeks reimbursement for personal injury protection benefits Allstate paid on behalf of its customers during timeframes specified in the lawsuit.