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Mar 8, 2008 12:00 am US/Central
Allstate Asks For $10 Million Against Chiropractor
IRVING (AP) ―
Allstate Insurance Company filed a federal lawsuit Thursday alleging deception and coercion on the part of a Texas-based chiropractic company.
The lawsuit, filed in U.S. District Court for the Northern District of Texas, accused 66 defendants of taking part in an insurance fraud scheme by convincing car crash survivors that they had severe injuries requiring immediate treatment, which Allstate had to cover.
The lead defendant is Arlington-based Chiropractic Strategies Group Inc. and its owner, Michael Kent Plambeck. Other defendants include related law office management companies, attorneys and telemarketers.
Allstate seeks $10 million in the lawsuit, alleging violations of the Federal Racketeer Influenced and Corrupt Organizations Act.
Plambeck did not immediately respond to a message left by The Associated Press on Thursday.
According to the 67-page complaint, a telemarketing company would solicit people who had been in car crashes, offering them a free chiropractic exam. Once at the clinics -- located in Texas, Ohio, Indiana and Alabama -- patients were told they needed immediate treatment.
Patients were also referred to personal injury lawyers, some of whom would show up at the clinic to sign up the patients as clients, according to the lawsuit.
(© 2009 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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