News Summary
Allstate Insurance has initiated a federal lawsuit against A to Z Supply Services, accusing the company of exploiting New York’s No-fault insurance system through fraudulent medical equipment claims. The complaint details allegations of unnecessary prescriptions and improper billing practices, seeking over $305,000 in restitution. The case highlights significant documentation deficiencies and is being closely monitored by the insurance industry amid ongoing concerns about fraud prevention and claim management.
New York, NY – Allstate Insurance Company has filed a federal lawsuit against A to Z Supply Services Inc., alleging that the company engaged in a fraudulent scheme exploiting New York’s No-fault insurance system. The lawsuit was filed on August 25, 2025, in the Eastern District of New York, and seeks to recover more than $305,000 in payments made for alleged fraudulent medical equipment claims.
The lawsuit names several defendants, including A to Z Supply Services’ principal, Michael Pogrebinsky, along with unnamed individuals and corporations identified as John Does and ABC Corporations. Allstate alleges that the defendants have been involved in fraudulent activities since January 2021, collaborating with medical clinics in the New York metropolitan area, specifically in Kings and Queens counties.
According to the complaint, A to Z Supply Services was involved in prescribing and billing for unnecessary medical equipment, including items such as cervical pillows, traction units, heat lamps, lumbar cushions, and back braces. Allstate contends that the prescriptions were generic and dictated by A to Z, rather than tailored to the specific medical needs of individual patients.
The insurance company claims that A to Z submitted thousands of reimbursement claims at rates that exceeded those permitted under current No-fault Law and Medicaid/workers’ compensation fee schedules. Allegedly, the company purchased equipment in bulk and misrepresented its nature, quality, and cost in claims submitted for reimbursement.
Allstate’s complaint highlights significant shortcomings in the documentation provided by A to Z. The essential supporting documentation, including delivery receipts and invoices, was either missing or lacked adequate detail for verification. In some instances, patients reportedly signed receipts without receiving any actual equipment, which were then submitted as proof of delivery.
The lawsuit also accuses A to Z and Pogrebinsky of paying kickbacks to clinics in return for prescriptions. Evidence within the complaint indicates a concerning trend, with multiple patients from the same accident receiving identical prescriptions, suggesting a lack of individualized medical care.
As part of the legal action, Allstate seeks a court declaration to relieve the company of any obligation to pay outstanding No-fault claims attributed to A to Z, based on claims of fraudulent conduct. The case is identified by case number 25-CV-4712, and as of now, the defendants have not yet responded in court.
This lawsuit not only seeks financial restitution for Allstate but also serves as a cautionary tale for the insurance industry regarding the critical importance of documentation and verification in claims processing. The outcome of this case could have significant implications for future practices in fraud prevention and claims management within the insurance sector.
New York’s regulatory framework for durable medical equipment (DME) reimbursement emphasizes specified caps on reimbursements, underscoring the importance of compliance with such regulations. The actions of A to Z Supply Services, as alleged by Allstate, exemplify the potential for abuse within the system.
As the legal proceedings continue, the insurance industry will be watching closely to see how this case unfolds and what it means for the future of claims processing and fraud-to-efforts nationwide.
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Additional Resources
- Insurance Business: Allstate Pursues $305,000 Insurance Fraud Claims in New York Lawsuit
- Insurance Business: Allstate Files RICO Suit Against Medical Supplier
- Queens Chronicle: Men Charged in Staged Car Crashes Insurance Scam
- Google Search: Medical Fraud Insurance
- Property Casualty 360: Lawsuit Claims Allstate Subsidiary Handed Consumer Data
- Encyclopedia Britannica: Insurance Fraud
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.
