Insurer Alleges Psychologist, Professional Corporations Participated In Billing Scheme

BROOKLYN, NY – Allstate Insurance Co. on June 23 sued a psychologist, several professional corporations and managers, alleging that they participated in a scheme of fraudulent billing that induced it to pay more than $1 million in unnecessary medical services under New York’s no-fault statute for personal injury protection benefits. Allstate says it also incurred more than $250,000 in arbitration fees from the fraudulent scheme. The insurer seeks a declaration that it is not legally obligated to pay the more than $400,000 in fraudulent claims submitted by the defendants (Allstate Insurance Co. v. Jay Alfred Seitz, Ph.D., No. 11-cv-03014, E.D. N.Y.).
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