Los Angeles County Superior Court has ruled in favor of Allstate Insurance Company and the State of California in a lawsuit topping $7 million that ends fraudulent business and billing schemes by several unlicensed medical and chiropractic personnel.
In its lawsuit, Allstate alleged Maria Miranda, Frank Rivera, and LA Healthcare Management, Inc. violated the state's Insurance Fraud Protection Act when they submitted more than 390 chiropractic claims that were falsely generated by unlicensed and untrained personnel, or because the billed treatments did not reflect patients' physical needs.
Judge William Fahey agreed with Allstate and ordered Miranda and Rivera to pay Allstate $3.9 million in penalties, plus $3.8 million in assessments and fees—a $7.7 million judgment.
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