News Summary
Allstate Insurance has filed a lawsuit against A to Z Supply Services and its principal, accusing them of a fraudulent scheme involving over $305,000 in fictitious claims. The complaint details how the defendants manipulated New York’s No-fault insurance system by partnering with medical clinics to submit excessive claims for medical equipment. The lawsuit alleges that prescriptions were not medically justified and suggests a broader conspiracy involving kickbacks and falsified documentation. Allstate seeks to recover the alleged losses and declare it is not liable for any further claims tied to the defendants.
New York — Allstate Insurance Company has filed a federal lawsuit in the Eastern District of New York, accusing A to Z Supply Services Inc. and its principal, Michael Pogrebinsky, of engaging in a massive insurance fraud scheme amounting to over $305,000. The lawsuit, submitted on August 25, 2025, alleges that the defendants manipulated New York’s No-fault insurance system to submit fraudulent claims over a period spanning from January 2021 until the filing date.
According to the complaint, A to Z Supply Services worked in collaboration with various medical clinics in Kings and Queens counties, generating excessive and unjustified claims for durable medical equipment (DME) and orthotic devices. The items include cervical pillows, traction units, heat lamps, lumbar cushions, and back braces, allegedly prescribed in large quantities and without proper medical justification.
Allstate’s allegations further claim that the prescriptions were lacking in detail and were generically dictated by A to Z rather than being personalized for the individual needs of patients. The company asserts that A to Z submitted thousands of falsified claims for reimbursement that exceeded the limits set by New York’s No-fault Law and Medicaid fee schedules.
Evidence presented in the lawsuit suggests that A to Z procured inexpensive medical equipment in bulk but misrepresented the nature, quality, and cost of these items when submitting claims. Furthermore, the documentation submitted, which included delivery receipts and invoices, was reportedly insufficient or omitted altogether, indicating a blatant attempt to bypass proper insurance protocols.
Additionally, the lawsuit claims that Pogrebinsky and A to Z offered kickbacks to clinics in exchange for fraudulent prescriptions. In some cases, patients reportedly signed delivery receipts at clinics without actually receiving the medical equipment at that time, furthering the fraudulent scheme.
Allstate is seeking to recover more than $305,000 that they allege was improperly paid due to these fraudulent claims. They also request the court to declare that they are not liable to cover any remaining No-fault claims from A to Z, citing the fraudulent activities perpetrated by the defendants. The lawsuit includes references to reimbursement limits outlined by the Medicaid Durable Medical Equipment Fee Schedule and other regulations dictated by New York law.
The complaint points to instances where patients received identical prescriptions and billing codes, indicating a coordinated effort and predetermined protocol among the medical clinics and A to Z. As of now, these serious allegations remain unproven, and no official responses have been filed by the defendants in court.
This lawsuit is filed under case number 25-CV-4712 and is currently pending in the United States District Court for the Eastern District of New York. The case highlights critical issues surrounding documentation and verification in the insurance claims process, emphasizing the need for increased vigilance to prevent fraudulent activities in the industry.
As litigation unfolds, it serves as a crucial reminder of the importance of maintaining stringent standards in the insurance sector and ensuring that all claims submitted are substantiated and compliant with necessary legal requirements.
Deeper Dive: News & Info About This Topic
- Insurance Business: Allstate Pursues $305,000 Insurance Fraud Claims
- Insurance Business: Allstate Files RICO Suit Against Medical Supplier
- QChron: Two Charged in Car Insurance Scheme
- Wikipedia: Insurance Fraud
- Google Search: Insurance Fraud News
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
