Allstate Sues More New York Medical Firms

Allstate has filed its seventh lawsuit this year against what it says are medical corporations committing fraud in New York State.

The $1.9 million suit claims that three medical corporations in the state were owned and operated by non-physicians who used outside corporation to siphon out profits. The suit names 11 defendants, including three physicians and company owners of

Quality Medical, Spartak Medical and Richmond Medical.

Allstate claims the professional corporations were fraudulently incorporated through a scheme using the name of a licensed medical physician, and that Michael Kipnis, Julia Kipnis, Gennady Belzer and Igor Tsimmerman, none of whom were physicians, secretly own and control the companies.

In addition, Allstate alleges that the defendants submitted fraudulent claims to Allstate through medical professional corporations that were never eligible to bill or collect no-fault benefits.

Since 2003, Allstate has filed 26 similar suits that it says have resulted in a combined $161 million being fraudulently billed.

In the seven suits filed this year, the insurer is seeking to recover damages totaling $10.5 million.