| Copyright: | PR Newswire | | Source: | PR Newswire | | Wordcount: | 682 |
IRVING, Texas, March 6 /PRNewswire-FirstCall/ -- An Arlington, Texas based
chiropractic company and its owner lead a list of 66 defendants in a federal
fraud lawsuit filed Thursday in Dallas. The suit alleges deception and
coercion were used against people involved in automobile accidents at clinics
in Texas, Ohio, Indiana, and Alabama.
Allstate Insurance Company filed the suit in the U.S. District Court for
the Northern District of Texas against Chiropractic Strategies Group, Inc.,
its owner Michael Kent Plambeck, related law office management companies,
attorneys, telemarketers, and others involved in the alleged fraud scheme.
Allstate seeks in excess of $10 million.
The lawsuit was filed following an extensive investigation by Allstate's
Special Investigative Unit, and seeks reimbursement for the sums Allstate has
paid in regard to allegedly fraudulent claims. The lawsuit allegations include
violations of the Federal Racketeer Influenced and Corrupt Organizations Act
(RICO), for which Allstate seeks treble damages and recovery of its attorney's
fees and court costs.
"Insurance fraud is a billion dollar business that costs the average
consumer $300 in higher insurance premiums every year," said Edward Moran,
Allstate assistant vice president in charge of the company's Special
Investigation Unit. "Allstate is aggressively pursuing the fight against
insurance fraud to protect consumers and help keep insurance costs down."
According to the 67 page complaint, the organization solicits persons who
have been involved in motor vehicle accidents through telemarketing, which
includes calls from a telemarketing entity the organization operates in
Kenner, Louisiana. The telemarketers promise the prospective patients a free
examination, and at times falsely represent that they are representatives of
"Allstate" or an "insurance company."
Coerced and Deceived
The Court filing alleges that, once at the clinic, the solicited
individuals are often coerced and deceived into treatment through a process
the organization calls "conversion." Potential patients are allegedly told
they have sustained substantial injuries and require an immediate course of
treatment. The complaint further alleges patients are then put through a
standardized and unnecessary treatment plan. Once a solicited individual is
"converted" into a patient, they are referred to a personal injury law office
associated with the organization. The Complaint alleges persons working at
these law offices often come directly to the clinics to "sign up" patients as
clients.
The Defendants
Named in the suit are Michael Kent Plambeck, D.C., Michael Capobianco,
D.C., Paul Grindstaff, D.C., Robert Ekin D.C., Glen Wilcoxson, M.D., Randall
Toca, Roland G. Toca II, Angel Junio, Douglas Friedman, Jennifer Giessner, Kim
Grindstaff, Charles Mora, Irma Escandon, and Attorneys Eugene Mercier, Rodney
Sipes, Margaret Ingle, Thomas Magelaner, Andrew LoCicero, and Scot
Labourdette. Business entities named in the suit include Chiropractic
Strategies Group, Inc., Media Placement Services, Inc., Professional
Management Group, LLC, Law Office Network, LLC and associated clinics in
Texas, Ohio, Indiana, and Alabama.
Call to Action
Persons who have knowledge of, or have been victimized by, the scheme
alleged in the complaint are encouraged to report this information to the
National Insurance Crime Bureau at 1-800-TEL-NICB (1-800-835-6422).
Past and Present Clinics Locations Texas Ohio Indiana Alabama Dallas Cincinnati Indianapolis Birmingham Grand Prairie Columbus Hammond Mobile Haltom City Toledo South Bend Huntsville Arlington Akron Amarillo Cleveland McAllen Canton Harlingen Dayton Weslaco Youngstown Brownsville Laredo El Paso San Antonio Austin Beaumont Texas City
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held
personal lines insurer. Widely known through the "You're In Good Hands With
Allstate(R)" slogan, Allstate helps individuals in approximately 17 million
households protect what they have today and better prepare for tomorrow
through approximately 14,900 exclusive agencies and financial representatives
in the U.S. and Canada. Customers can access Allstate products and services
such as auto insurance and homeowners insurance through Allstate agencies, or
in select states at allstate.com and 1-800 Allstate(R). Encompass(R) and
Deerbrook(R) Insurance brand property and casualty products are sold
exclusively through independent agents. The Allstate Financial Group provides
life insurance, supplemental accident and health insurance, annuity, banking
and retirement products designed for individual, institutional and worksite
customers that are distributed through Allstate agencies, independent
agencies, financial institutions and broker-dealers.
SOURCE Allstate Insurance Company
CONTACT: Kristen Beaman of Allstate, +1-972-871-6656, Kristen.beaman@allstate.com
This is a news service of Thomson Business Intelligence Service ©2006. This content is for your personal use only, subject to Terms and Conditions. No redistribution allowed.
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