Allstate Insurance Company, along with its affiliates, filed a federal lawsuit in the US District Court for the Eastern District of New York on August 25, 2025, seeking to recover over $305,000 in alleged fraudulent claims tied to New York’s no-fault insurance system. The lawsuit targets A to Z Supply Services Inc., its principal Michael Pogrebinsky, and unnamed individuals and entities, accusing them of orchestrating a scheme to defraud Allstate by submitting thousands of inflated claims for medical equipment since January 2021.
According to the complaint, A to Z Supply Services, under Pogrebinsky’s control, collaborated with medical clinics in the New York metropolitan area, particularly in Kings and Queens counties, to submit fraudulent reimbursement claims. These claims involved inexpensive medical equipment purchased in bulk, misrepresented in terms of nature, quality, and cost, and billed at rates exceeding those permitted under New York’s no-fault law and related Medicaid and Workers’ Compensation fee schedules. Allstate alleges that supporting documentation, such as delivery receipts and invoices, was either missing or lacked sufficient detail to verify the equipment provided. In some instances, patients reportedly signed delivery receipts at clinics without receiving the equipment, which were then used as false proof of delivery. The insurer further claims A to Z paid kickbacks or other compensation to clinics to secure prescriptions, fueling the fraudulent scheme.
Allstate is pursuing damages under the Racketeer Influenced and Corrupt Organizations Act (RICO), New York common law, and the Federal Declaratory Judgment Act, seeking compensatory and treble damages, as well as a court declaration that it is not obligated to pay any outstanding claims tied to the alleged fraud. The case underscores the vulnerabilities in New York’s no-fault system, which requires insurers to cover reasonable medical expenses for car accident injuries, regardless of fault. Allstate argues that A to Z exploited this system through fraudulent prescriptions and inflated claims, costing the insurer significant sums.
This lawsuit is part of Allstate’s broader efforts to combat insurance fraud in New York. In recent years, the company has filed multiple lawsuits addressing similar issues, including a July 2025 case seeking $842,000 from five New York clinics for alleged no-fault fraud and an August 2025 suit against pharmacies for $1.48 million in fraudulent claims. Since 2003, Allstate has initiated numerous fraud lawsuits in the state, seeking hundreds of millions in damages, as New York’s no-fault system remains a target for fraudulent schemes, contributing to higher premiums for policyholders.
The case highlights the importance of rigorous claims verification and documentation for insurers. As it progresses, it may influence how insurers manage fraud prevention within complex provider networks. The outcome could set precedents for handling similar fraud cases under New York’s no-fault system, potentially impacting insurance practices and costs for consumers.