Allstate sues purported Medical Billing Company on allegations of engaging in the practice of utilizing phony names to bill for medical services

Warren, Michigan (June , 2002) — In an effort to combat illegal medical billings, Allstate Insurance Company and Encompass Insurance filed a lawsuit today against Dr. Frederick K. Lewerenz, D.O. of Rochester Hills, Michigan and Dr. Jasper McLaurin of Ann Arbor, Michigan, for engaging in medical billing practices in violation of the Michigan No-Fault Act. The lawsuit seeks a declaration in regard to reimbursement of approximately $436,000 for payments issued by Allstate Insurance Company on behalf of its policyholders.

The lawsuit alleges that Dr. Lewerenz and Dr. McLaurin submitted billings for medical treatment using the names and tax identification numbers of dissolved corporations and/or sham corporations. The suit also alleges that Dr. Lewerenz billed more for treatment and testing when a patient had active insurance benefits. Dr. Jasper McLaurin conducted neurological testing for Dr. Lewerenz’s patients and also submitted billings under the phony corporations. This suit currently involves 413 claims which includes billing for services not rendered, billing for services by persons not legally licensed to practice medicine, and unreasonable and unnecessary billing. The lawsuit was filed in the Macomb County Circuit Court.

“Allstate strongly believes that eliminating fraud is in the best interest of our customers and can have a positive effect on the cost of insurance”, said Edward J. Moran, assistant vice president for Allstate’s Special Investigative Unit. “When we prevent insurance fraud, we prevent the bad guys from getting money that doesn’t belong to them. Fraud is not a victimless crime. The cost of fraud comes directly out of the premiums we pay to our insurance companies.”

The defendants in this case jointly and severally include:

Dr. Frederick K. Lewerenz individually and as Lewerenz Clinic, Lewerenz Center for Health & Wellness, Lewerenz Health & Wellness, F.K. Lewerenz Health & Wellness, Dearborn Family & Sports Medicine, Family Rehabilitation Center, Lewerenz Health & Wellness Company, NFC/Tri County, NFC/Lewerenz Clinic PC, NFC/Lewerenz Clearing PC, Dearborn Diagnostic Clinic, and Dearborn Diagnostic and Therapeutic Clinic.

Dr. Jasper McLaurin
Formerly CNA Personal Insurance, Encompass was launched in September 2000 as an insurance brand with more than 20 years of relationships established with independent agents and their customers. Encompass, as a part of the Ivantage Group, a division of The Allstate Corporation (NYSE: ALL), is a brand devoted exclusively to independent agents, selling automobile, homeowner and related insurance to 1.2 million customers through a network of more than 3,400 independent insurance agents. Allstate, widely known through the “You’re In Good Hands With AllstateР’В®” slogan, is the nation’s largest publicly held personal lines insurer. Encompass can be found on the web at www.encompassinsurance.com.

The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer. Widely known through its “You’re In Good Hands With AllstateР’В®” slogan, Allstate provides insurance products to more than 14 million households and has approximately 13,000 exclusive agents in the U.S. and Canada. Customers can access Allstate products and services through Allstate agents, or in select states at allstate.com and 1-800-Allstate. Encompass and Deerbrook Insurance brand property and casualty products are sold exclusively through independent agents. Allstate Financial Group includes the businesses that provide life insurance and investment products.

FOR MORE INFORMATION:

John Goldwater
(248) 351-7216