SOURCE: Allstate Insurance Co.

Allstate Insurance Co.

August 12, 2014 10:35 ET

More Than $1.2 Million Awarded in Las Vegas RICO Case

Judge Orders Award for Allstate Insurance in Medical Insurance Fraud Case

LAS VEGAS, NV--(Marketwired - Aug 12, 2014) - A federal district Judge in Las Vegas recently ordered Richard "Rit" Charette, and his related businesses, Elite ATL, LLC, Real Time Marketing, Inc., and Expert Management, Inc., to pay Allstate Insurance Company more than $1.2 million in a RICO (Racketeering Influenced Corrupt Organization) case. The award allows Allstate (NYSE: ALL) to continue to vigorously fight medical insurance fraud and offer competitive products in Nevada.

"Medical insurance fraud impacts every policyholder's premium, and it's not fair for consumers to pay higher rates for unlawful behavior," said Melinda Wilson, Allstate spokesperson. "This judgment further validates our commitment to protect our customers from becoming victims of this type of fraud."

The RICO lawsuit, filed in 2010 by Allstate against several medical professionals and personal injury attorneys, sought to recover funds from 78 auto accident claim settlements that involved Charette and his related businesses. Allstate's lawsuit alleged that each defendant violated both Nevada State and Federal law based on a pattern of fraudulent behavior, including: exaggerating treatment reports, providing unnecessary chiropractic services, preparing fraudulent bills and making unnecessary referrals to healthcare providers for their own financial gain. 

"Insurance fraud is a multi-billion dollar industry that financially affects all Americans," said Wilson. "This judgment helps send the strong message that Allstate maintains a zero-tolerance approach in the fight against insurance fraud."

Allstate customers in Nevada are encouraged to report insurance fraud by calling Allstate's national fraud hotline at 1-800-Allstate.

About Allstate
The Allstate Corporation (NYSE: ALL) is the nation's largest publicly held personal lines insurer, serving approximately 16 million households through its Allstate, Encompass, Esurance and Answer Financial brand names and Allstate Financial business segment. Allstate branded insurance products (auto, home, life and retirement) and services are offered through Allstate agencies, independent agencies, and Allstate exclusive financial representatives, as well as via, and 1-800 Allstate®, and are widely known through the slogan "You're In Good Hands With Allstate®." As part of Allstate's commitment to strengthen local communities, The Allstate Foundation, Allstate employees, agency owners and the corporation provided $29 million in 2012 to thousands of nonprofit organizations and important causes across the United States.

Contact Information

  • Contact:
    Chelci Vaughan
    Email Contact
    602-317-4825 (cell)
    Twitter @AllstateSW