NU Online News Service, Dec. 22, 2:09 p.m. EST

Allstate Insurance said it was the victim of fraud by a sophisticated group of doctors and lawyers, according to a federal lawsuit filed in Las Vegas.

The insurer said a medical center, law firm, and their owners and practitioners allegedly engaged in a scheme to defraud the company by exaggerating symptoms and injuries of people involved in about 100 accidents from 2004 to 2010.

Peter Mario Belle, operator and manager of Accident Injury Medical Center (AIM), solicited clients involved in accidents, prepared bogus treatment reports and worked with local law firms such as Accident Trial Lawyers to increase financial gain from inflated billing statements paid by insurers such as Allstate.

Allstate said it seeks more than $1 million in actual, treble and punitive damages. The company filed the lawsuit in U.S. District Court on the basis of federal and state Racketeer Influenced and Corrupt Organization (RICO) Act laws.

According to the lawsuit, patients at AIM would allegedly be required to sign a waiver stating that all payment for treatment was to be sent to the patient's attorney. "AIM's first avenue of recovery was to look to the proceeds of settlements or judgments paid for by insurance companies such as Allstate," the suit states.

AIM would give a referral to a local attorney involved in the alleged scam. The law firm would then pay AIM a kickback or referral fee, Allstate alleges.

The company's Special Investigative Unit investigated the suspect claims. One of the men allegedly involved in the scheme, Richard Charette, was involved with Accident Trial Lawyers and management and marketing firms also listed as defendants.

Mr. Charette is currently awaiting trial after being indicted in April on federal charges he disclosed personal health information to attorneys.

The suit also names doctors Sebastian Balle and Arthur Rossi, who with Peter Balle would allegedly prepare "boilerplate" patient reports that included the exact same language. Patients "were diagnosed and treated with the intent of creating or exaggerating insurance claims, rather than legitimately assessing their true condition," Allstate said.

Special Reports /

Allstate Files Federal Lawsuit Against Alleged Vegas Fraud Ring

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