UPDATE: Allstate Awarded $3.8 Million in Fraud Judgment

Based on a six-week jury trial, theUnited States District Court for the Northern District of Texas has entered a$3.8 million judgment in favor of Allstate Insurance Company (NYSE: ALL). The jury foundthat Michael Kent Plambeck, D.C., Jennifer Giessner, Douglas Friedman, RandalToca, and other persons and entities engaged in a pattern of racketeeringactivity in violation of the Federal Racketeering Influenced and CorruptOrganizations Act (RICO) and the Ohio Corrupt Practices Act. This judgmentsets the stage for the company to vigorously fight this type of healthcarefraud, so it can continue offering competitive products in the involvedstates.Allstate logo. (PRNewsFoto/Allstate Insurance Company)"Insurance fraud affects all policyholder's premiums, and it's not fair forconsumers to pay higher rates for this type of behavior," says AllstateSpokesperson Michelle Therrien. "We are committed to protecting our customersfrom being victimized by this type of fraud."The RICO complaint filed by Allstate alleged an intricate multi-state schemeinvolving the operation of chiropractic clinics, law offices, andtelemarketing entities, in Texas, Louisiana, Ohio, Alabama, and other states.Allstate alleged the organization solicited persons involved in automobileaccidents, ran them though unnecessary treatment, and referred them toassociated personal injury law offices in order to make claims againstAllstate and its insureds. Allstate presented evidence of a pattern ofracketeering activity in violation of RICO, including use of the U.S. Mail andinterstate wire transmissions to facilitate the scheme, and interstatetransportation of money wrongfully obtained through the scheme. In addition toPlambeck, Giessner, Friedman, and Toca, the jury found that MichaelCapobianco, D.C., Paul Grindstaff, D.C., Chiropractic Strategies Group, Inc.,Media Placement Services, Inc., and a number of clinic entities in Texas, Ohioand Alabama were also involved in the racketeering organization."This case demonstrates our commitment to fight fraud wherever it lives andthe victory is a testament to our zero-tolerance approach in the fight againstinsurance fraud," Therrien said.The Allstate Corporation (NYSE: ALL) is the nation's largest publicly heldpersonal lines insurer, serving approximately 16 million households throughits Allstate, Encompass, Esurance and Answer Financial brand names andAllstate Financial business segment. Allstate branded insurance products(auto, home, life and retirement) and services are offered through Allstateagencies, independent agencies, and Allstate exclusive financialrepresentatives, as well as via www.allstate.com, www.allstate.com/financialand 1-800 Allstate^®, and are widely known through the slogan "You're In GoodHands With Allstate^®." As part of Allstate's commitment to strengthen localcommunities, The Allstate Foundation, Allstate employees, agency owners andthe corporation provided $29 million in 2012 to thousands of nonprofitorganizations and important causes across the United States.