Encompass Insurance, a subsidiary of Allstate, announced today that The Superior Court of Massachusetts entered civil judgments against Alan and Marc Cohen and has ordered them to pay Encompass $1,155,129 in damages. Encompass was one of four insurers to sue the Cohens and their chiropractic clinics, alleging the chiropractors engaged in the practice of submitting fraudulent medical bills from staged motor vehicle accidents.
The brothers, both former chiropractors, initially sued Encompass claiming that the company owed them money for chiropractic services they reportedly had given patients involved in automobile accidents. Encompass countersued the brothers for fraud, conspiracy, unfair business practices, and violations of the RICO Act.
The Superior Court ultimately dismissed all of the Cohen’s Chiropractic Clinic’s claims against Encompass agreeing with Encompass that the Cohen’s widespread use of “runners” to stage accidents and “pre-established treatment recipe for accident victims who were their patients of their clinics constituted Fraud. As a result, The Superior Court awarded Encompass treble damages, attorney’s fees and costs on its claims against the brothers.