Allstate Accuses Clinics, Med Transportation Company of Massive Insurance Scam

April 23, 2019, 10:46 AM

What? An insurance company claims it has been scammed. Shocking.

JC Reindl of the Detroit Free Press reports: 

Auto insurance giant Allstate claims in a new federal lawsuit that it fell victim to a racketeering conspiracy involving six metro Detroit patient treatment clinics, an MRI center and a medical transportation company that  Allstate says acted together and made millions by abusing Michigan's no-fault insurance system.

Some of the clinics received help, the lawsuit says, from tow truck drivers and auto repair shop workers, who were supposedly offered kickbacks by middlemen such as $500 per patient referral. Other patients were illegally solicited to visit clinics just days after their car crashes, according to Allstate, by individuals who called up and claimed to be with a Southfield-based law firm.

Allstate made these allegations in the civil racketeering lawsuit filed in late February in U.S. District Court in Detroit. It has not previously been reported.

Read more:  Detroit Free Press

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