A local chiropractic company and its owner are named in a federal lawsuit alleging insurance fraud.
Allstate Insurance Co.
filed the lawsuit Thursday in U.S. District Court for the Northern
District of Texas in Dallas, naming 66 defendants, including
Arlington-based Chiropractic Strategies Group Inc.
and its owner, Michael Kent Plambeck. Others named include related law
office management companies, attorneys, telemarketers and others
involved in the alleged fraud scheme.
A call to Chiropractic Strategies Group for comment was not immediately returned.
The suit alleges deception and coercion were used against people
involved in automobile accidents at clinics in Texas, Ohio, Indiana and
Alabama.
Allstate (NYSE: ALL) is seeking more than $10 million, which is the
amount the company says it paid in connection to allegedly fraudulent
insurance claims.
According to the 67-page complaint, the chiropractic clinic
solicits individuals who have been involved in motor vehicle accidents
through telemarketing, which includes calls from a telemarketing
operation the organization operates in Kenner, La.
The telemarketers promise the prospective patients a free
examination, the lawsuit claims, and at times falsely represents that
they are representatives of "Allstate" or an "insurance company."
The lawsuit accuses the defendants of coercing individuals into
treatment by telling them they have sustained substantial injuries that
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, the
lawsuit claims, they are referred to a personal injury law office
associated with the organization. The complaint also says that
employees at these law offices often come directly to the clinics to
"sign up" patients as clients.
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