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Allstate Insurance Company Files $6.6 Million Medical Fraud Lawsuit Against 47 Durable Medical Supply Entities and their Respective Individual Owners

HAUPPAUGE, N.Y., June 21, 2013 /PRNewswire/ -- Allstate Insurance Company is seeking to recover $6.6 million in treble damages against 80 New York and Florida area defendants in its 4th insurance fraud lawsuit of 2013. Since 2003, Allstate has filed 48 fraud lawsuits in New York State seeking more than $237 million in damages. 

The complaint was filed in the United States District Court for the Eastern District of New York against the following defendants: Fotima Abutova, Ivan Batiashvili, Sam Blinder, Michael Borukhov, Yuriy Denisov, Konstantin Dzhaginov, Aleksandr Firayner, Vladimir Geykhman, Moysey Ifraimov, Vladimir Kaminsky, Ariel Kandhozov a/k/a Ariel Kandhorov and Ariel Kand, Ruslan Kapusta, Gabriel Kohen, Alexander Konviser, Sergey Lazarev, Daniel Lyandres, Olga Mullakandova, Vladimir Nazarov, Yevgeny Nemets, Serge Ogan, Semyon Pogrebizhsky, Yevgeny Spektor, Inna Tkachenko, Maksym Tkachenko, Renata Tkachenko, Iosif Valdman, David Zilber, Nisa Zulunov, Advanced Medical Supply Inc., B & Y Surgical Supplies Inc., Big Apple Ortho Products, Inc., Excel Medical Supplies, Inc., Five Boro Medical Equipment, Inc., G & A Medical Supply LLC, Goldstar Equipment Inc., Health Aid Medical Supply Inc, IG Medical Supply, LLC., Infinity Medical Supply Inc. d/b/a Kun Medical Supply, Lender Medical Supply Inc., Longevity Medical Supply, Inc., Multi Service of NY Inc., New Way Medical Supply, Corp., Next Century Enterprises, Inc., OrthoPlus Products, Inc., OS Ortho Services Inc., Premier DME Corp., ProDME, Inc., Quality Service Supplies Inc., Six Star Supply, Inc., Soho Medical Supplies Inc., SVP Medsupply Inc., TAM Medical Supply Corp., TSM Medical Supply & Orthocare Inc., Ultimate Health Products Inc., Ultra Ortho Products Inc., Unlimited Medical Supply Services Inc., V+B Magic Recovery Supply Inc., VIP Medical Supplies, Inc., Vladenn Medical Supply Corp., Margarita Akmalova, Shimon Indictor, Oleg Simakov, Vadim Zalogin, Michael Zavrazhin, A to Z Wholesale Inc., American Mobility Medical, Inc., Any Choice Supply, Inc., Devonian Inc., Easy Hill Wholesale Medical Supply Inc., IDEL International Trading Inc., IG&NAT Services, Inc., Imprezza NYC Inc., Major Market Merchandise Inc., MEM Wholesale Inc., Mikos Trading, Inc., MIKS Trading, Inc., New Step Services Inc., One Stop Wholesale, Inc., ROPA Inc., and VZ Group Inc. 

It alleges that 31 durable medical retail equipment companies and 28 individuals, who allegedly owned one or more of these retail companies, and 16 durable medical wholesale companies and 5 individuals, who allegedly owned one or more of the wholesale companies, submitted or facilitated the submission of fraudulent and is leading bills and supporting documents to Allstate for reimbursement under New York State's No-fault Law.

According to the Insurance Information Institute, no-fault fraud is costing New Yorkers millions of dollars year-after-year. "In essence, honest hardworking New Yorkers are paying a 'fraud tax,'" said Allison McMahon, Allstate spokesperson. "We need lawmakers to enact meaningful insurance reform that puts the citizens of New York first." 

Allstate is joined by other insurers and many New York State leaders in its pursuit for comprehensive reform of the no-fault system. "The no-fault system is being exploited and responsible citizens are the victims," McMahon said. "Without the support of lawmakers, incidents of fraud will continue to increase. We need to work together this legislative session to fix the broken no-fault system."

The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer, serving approximately 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment. Allstate branded insurance products (auto, home, life and retirement) and services are offered through Allstate agencies, independent agencies, and Allstate exclusive financial representatives, as well as via, and 1-800 Allstate®, and are widely known through the slogan "You're In Good Hands With Allstate®." As part of Allstate's commitment to strengthen local communities, The Allstate Foundation, Allstate employees, agency owners and the corporation provided $29 million in 2012 to thousands of nonprofit organizations and important causes across the United States.

SOURCE Allstate Insurance Company
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