A group of insurance providers has accused several psychology practices and their management firms of orchestrating a scheme to submit fraudulent claims for psychological services, resulting in more than $1 million in charges for treatments described as medically unnecessary or never rendered. The complaint was filed by Allstate Insurance Company, Allstate Indemnity Company, Allstate Property & Casualty Insurance Company, Allstate Fire & Casualty Insurance Company, and Allstate Northbrook Indemnity Company in the United States District Court for the Eastern District of New York on May 12, 2026, naming Jessica Paulin, Premier Transcription Services LLC, Premier Wellness Consulting LLC, Daria Alongi, Psy.D., Canalside Psychological Health PLLC, Konstantinos Tsoubris, Ph.D., River Park Psychological Services PLLC, and Konstantinos Tsoubris as defendants.
According to the filing, the plaintiffs allege that the defendants engaged in an organized healthcare fraud operation targeting New York’s No-Fault insurance system. The complaint states: “This action arises from a coordinated and ongoing scheme involving psychologists, social workers, unlicensed laypersons, and sham professional psychology practices who conspired together to exploit patients and defraud New York No-Fault insurers.” The plaintiffs claim that over $1 million in charges were submitted for psychological services labeled as diagnostic interviews, medical history reviews, psychological testing, and psychotherapy—services which were allegedly provided by unqualified individuals under predetermined protocols designed to maximize billing rather than patient care.
The document identifies Jessica Paulin as the architect of the alleged scheme. It reports that Paulin recruited licensed psychologists Daria Alongi and Konstantinos Tsoubris to serve as nominal owners of Canalside Psychological Health PLLC and River Park Psychological Services PLLC respectively. In exchange for financial consideration, these licensed professionals allegedly allowed Paulin to use their credentials so she could operate and control the practices despite lacking legal authority under New York law. The complaint asserts: “Alongi and Tsoubris were owners of the Providers Defendants in name only and did not legitimately engage in the practice of psychology through the practices.”
The filing outlines how Paulin used her entities—Premier Transcription Services LLC and Premier Wellness Consulting LLC—to manage finances and operations. According to court documents: “Paulin established a flow-of-funds structure whereby the Provider Defendants paid fees for services purportedly rendered by entities she owned and controlled.” These arrangements included business contracts requiring monthly payments from Canalside ($7,000) and River Park ($8,000) to Premier Wellness Consulting LLC for administrative oversight. Additionally, agreements with Premier Transcription Services LLC required payment “as invoiced,” with no pricing limits stated.
The plaintiffs further allege that these business agreements were used to siphon insurance proceeds away from legitimate clinical activities into management-controlled accounts. Financing agreements with third-party funders reportedly enabled immediate cash advances against pending insurance claims. Documentation cited in the filing describes how insurance checks were deposited into escrow accounts managed by attorneys linked to prior healthcare fraud prosecutions.
To gain access to patients whose benefits could be billed under No-Fault laws, the complaint states that defendants entered into licensing agreements with numerous clinics across New York City—arrangements described as “illicit licensing agreements disguised as office subleases.” Clinic staff allegedly directed patients toward predetermined providers regardless of medical need.
The legal basis for Allstate’s claims includes violations of both state law (such as prohibitions on layperson control over professional corporations) and federal statutes including the Racketeer Influenced and Corrupt Organizations Act (RICO). The plaintiffs assert causes of action under RICO sections 1962(c), 1962(d), common law fraud, unjust enrichment under New York law, and seek relief under the Federal Declaratory Judgment Act.
Allstate seeks actual damages currently exceeding $350,063.15—the amount already paid out—and requests a declaration that it is not legally obligated to pay or reimburse any further claims connected with these defendants or their agents relating to past or future No-Fault benefit submissions (currently totaling more than $667,035.18). The company also demands injunctive relief barring further payments.
The case is being handled by attorneys from the Law Office of Camille Nanni on behalf of Allstate Insurance Company et al., under case number 26-cv-2820.
Source: 126cv02820_Allstate_Insurance_Company_v_Paulin_Complaint_Eastern_District_New_York.pdf