Allstate Insurance Company has filed a lawsuit targeting multiple defendants involved in an alleged fraudulent scheme related to durable medical equipment (DME). The complaint names BSD OS LLC, Luminex BK LLC, and several other entities and individuals accused of defrauding Allstate through false insurance claims.
The lawsuit, brought by Allstate Insurance Company and its subsidiaries—Allstate Indemnity Company, Allstate Property & Casualty Insurance Company, and Allstate Fire & Casualty Insurance Company—alleges that the defendants submitted fraudulent No-Fault insurance charges for unlicensed and medically unnecessary DME items, including pneumatic compression devices and transcutaneous electrical joint stimulation devices. According to the complaint, the defendants intentionally sought payments for these false claims, violating federal laws such as the Racketeer Influenced and Corrupt Organizations (RICO) Act and engaging in common-law fraud.
Allstate’s complaint states that the defendants manipulated licensure applications to appear legitimate while failing to comply with state and local regulations. Despite being prohibited from seeking New York No-Fault claims due to licensing violations, the defendants allegedly dispensed DME as part of a pre-determined treatment protocol that ignored actual medical needs. The scheme was reportedly aided by John J. McGee, D.O., who provided prescriptions through clinics serving primarily No-Fault patients.
The plaintiffs seek more than $679,663.38 in damages for No-Fault payments made under the alleged scheme and request a declaration that they are not obligated to make further payments related to any claims submitted by the defendants. The complaint also references allegations of mail fraud, asserting that invoices and bills were transmitted through the U.S. Mail falsely certifying eligibility for No-Fault reimbursement.
The plaintiffs are represented by attorneys from King, Tilden, McEttrick & Brink P.C. The case was filed in the United States District Court for the Eastern District of New York under Case ID 1:25-cv-06016.