Progressive has filed a $250,000 insurance fraud suit in U.S.District Court in Philadelphia against the owners and operators ofAll-Care Chiropractic P.C.

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The action alleges that All-Care of Philadelphia has committedmultiple violations of the Racketeering Influenced and CorruptOrganizations Act (RICO), Pennsylvania insurance fraud law, andother statutes.

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According to the complaint, All-Care owners and operatorsRichard Walinsky and his mother Eileen Means produced and submittedfraudulent medical reports to support charges for medical servicesnever performed. The clinic also administered unnecessary andexcessive treatments to generate higher bills, it was alleged.

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The suit follows a criminal investigation of the clinic inAugust 2004 by the Philadelphia attorney general's office. Theinvestigation led to 23 arrests in connection with the schemes,including Dr. Walinsky and Ms. Means.

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Progressive is the second major insurer to sue All-Care. In July2004 Allstate Insurance Co. filed a half-million-dollar actionagainst the company for alleged fraudulent billing practices.

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All-Care did not return calls from NU seeking comment.

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