Allstate New Jersey Suit Alleges Medical Providers Set up Sham Cos.

November 16, 2000

Allstate New Jersey Insurance Co. filed suit in Morris County Superior Court against 39 defendants alleging violations of the New Jersey Fraud Prevention Act, the New Jersey RICO statute, and several sections of the New Jersey Administrative Code. In the suit, Allstate New Jersey is seeking restitution of more than $3.5 million paid on fraudulent medical bills totaling almost $10 million.

Among the defendants are Matthew E. Lister, D.C. of Wayne, NJ, Dr. Michael Martin Katz of New York, Stefano R. Mazzola, currently serving a prison sentence on extortion charges, and Peter Mylenki, also known as “Petey Goggles.”

In the complaint, Allstate New Jersey contends that the defendants would “buy”‘ claimants through cash payments to a network of “runners” or “cappers” and would in turn “sell” those patients to health care providers either in exchange for payments, or through a form of bartering. “Our complaint consists of twenty-seven counts against 39 defendants. Of those defendants, 20 are corporations, 12 are health care practitioners and seven are non-licensed individuals,” said Kenneth E. Pringle, of Pringle Quinn Anzano, P.C., attorneys representing Allstate New Jersey.

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