Progressive has filed a $250,000 insurance fraud suit in U.S. District Court in Philadelphia against the owners and operators of All-Care Chiropractic P.C.
The action alleges that All-Care of Philadelphia has committed multiple violations of the Racketeering Influenced and Corrupt Organizations Act (RICO), Pennsylvania insurance fraud law, and other statutes.
According to the complaint, All-Care owners and operators Richard Walinsky and his mother Eileen Means produced and submitted fraudulent medical reports to support charges for medical services never performed. The clinic also administered unnecessary and excessive treatments to generate higher bills, it was alleged.
The suit follows a criminal investigation of the clinic in August 2004 by the Philadelphia attorney general's office. The investigation led to 23 arrests in connection with the schemes, including Dr. Walinsky and Ms. Means.
Progressive is the second major insurer to sue All-Care. In July 2004 Allstate Insurance Co. filed a half-million-dollar action against the company for alleged fraudulent billing practices.
All-Care did not return calls from NU seeking comment.
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