Allstate files $1M fraud lawsuit in New York

The racketeering suit alleges that a licensed psychologist and five others illegally used four corporations to file claims. Allstate is alleging that the defendants submitted or helped submit claims for psychological services through companies that weren't eligible to collect the insurance benefits because they weren't controlled by licensed professionals.

The suit contends that HK Psychological, P.C., Kingshwy Psychological, P.C., Omega Psychological, P.C. and Jay Psychological, P.C. were actually owned and operated by laypersons using the name of licensed psychologists. The suit alleges that Ben L. Adler, Alex Gormakh, Milana Gormakh, Peter Kerner and Shari Matatov, none of whom were licensed practitioners, secretly owned and controlled the corporations. One of the psychologists whose name was used was aware of the scheme, Allstate says in the suit.