More Excerpts

      The Pot Calling The Kettle Black

      COMMENT: Right after 20/20 reports on alleged fraudulent practices
      by Allstate (Wednesday October 14, 1998) Partial Transcript we get
      this news.  Remember, these people have been raided by the FBI
      and are under investigation for fraud already.  A diversion
      perhaps? - WCH

     Date: Thu, 15 Oct 1998 09:56:20 -0400
     Subject: Transparent, but not to editors.

     The very day abc's 20/20 aired an expose of Allstate's widespread
     cheating after the Northridge quake, on Oct 14, Allstate put out a press
     release saying they were suing doctors in California. It was an attempt
     to divert attention from their own massive wrongdoing, and something
     they Always do.  And as usual, it worked.

     It was transparent to us, but not to the many gullible newspaper editors
     who printed their PR verbatim but missed the real story.

     It also shows that Allstate has not learned from this, or changed their
     execrable tactic of blaming others or finding goats  for their own

     Jim & Paula

     You're In Bad Hands With Allstate (and others)

      October 15, 1998
      Allstate Alleges Fraud in Lawsuits
     Filed at 1:02 a.m. EDT
     By The Associated Press
     CHICAGO (AP) -- A special investigative unit formed by Allstate
     Insurance Co. sifted through reams of billing and claim forms
     before filing lawsuits in three states against doctors, health care
     providers and other individuals accused of either inflating or
     submitting false medical and auto insurance claims.
     The lawsuits -- filed in Cook County Circuit Court in Chicago, Los
     Angeles County Superior Court and Morris County Superior Court in
     Passaic, N.J. -- seek more than $35 million in damages.
     Allstate claims the defendants over-billed insurance companies by
     charging patients for more expensive services than they actually
     received and for treatment the injured never got.
     ``We review records thoroughly, looking for either medical or loss
     reports that are strikingly similar, and take steps from there,''
     said Ed Moran, head of Allstate's 637-member special investigative
     unit. ``These people have made a lot of money over the years, and
     our investigations are aimed at shutting down an operation and
     making people think twice about getting into this line of work.''
     In the Illinois lawsuit, Allstate contends two Chicago men --
     Martin Karbin and Stephen Koppel -- illegally owned and operated
     clinics on the city's North and South sides and fraudulently
     inflated bills by charging for false services from 1987 through
     April 1998.
     Neither man is a licensed medical professional, a requirement under
     state law to operate a medical treatment facility, the lawsuit
     contends. The company is seeking $1.95 million in damages from the
     men, their companies -- NC Investors Group Inc. and SJM Business
     Group Inc. -- and physician John Haebich, who managed the NC
     Investors Group clinics.
     ``These clinics, literally, have had 13 different names and almost
     as many locations,'' Moran said. ``And patients may have been
     treated for a cold while we were billed for pneumonia. This is the
     kind of thing we've got to stop.''
     Phone numbers for Karbin and Koppel were unlisted. There was no
     listing for NC Investors Group; messages were left for comment at
     SJM Business Group and Haebich's home.
     In the California case, Allstate accuses 10 medical doctors and one
     chiropractor, a medical clinic staff member, seven clinics and one
     medical management company of filing false claims. Allstate is
     seeking more than $33 million in statutory damages.
     There was no phone listing in Los Angeles for Arthur Collins, owner
     of the seven clinics that operated as far south as San Diego and as
     far north as Oxnard. There also was no listing for A&L Medical
     Management Group.
     The nation's largest publicly traded insurer this year has filed
     several cases against California health care providers, seeking
     more than $150 million in damages.
     In New Jersey, Allstate filed an additional brief against 25 people
     accused of taking part in a ring that staged false accidents. The
     company sued more than 1,000 people in 1997, accusing them of
     taking part in what it says is a continuing ring.
     Auto insurance fraud results in nearly $20 billion annually in
     losses, while total insurance fraud brings the figure closer to
     $100 billion annually, according to the Coalition Against Insurance
     Fraud, a Washington-based group comprised of insurers, consumer
     groups and regulators.
   Copyright 1998 The New York Times Company
   The information contained in this AP Online news report
   may not be republished or redistributed
   without the prior written authority of The Associated Press.
                              YET MORE

From kana@fcol.com Fri Feb 26 23:51:11 1999
Date: Fri, 26 Feb 1999 00:49:32 -0500
From: Jim and Paula 
To: vigilante@primeline.com
Subject: The Insurer Crime Outline

    [The following text is in the "iso-8859-1" character set]
    [Your display is set for the "" character set]
    [Some characters may be displayed incorrectly]

The Insurer Crime Outline
   eXposing America's Bandit Industry

Today's Articles:  "Enter Allstate, Exit my Life";   MIST



The letter below is one of the reasons we work so hard, despite the
ignorance of the media, the arrogance of the insurers, and the corruption of
bought politicians, co-opted DOIs, and insurer-friendly judges.  When is
this crap going to end?  When is the America going to wake up to one of the
nation's greatest hidden disasters?


Just a note of joy at finding your site.  My life has been destroyed by
Allstate Insurance.  5 years ago after having successful brain operation
that was a miracle, a driver with a revoked licesense hit me head on. I have
been in constant pain, endured a neck fusion surgery and from the doctors
use of to many anti inflammatory steroids, to reduce the pain and swelling,
my adrenal glands and whole endocrines system is shot and not functioning
correctly. I know what is the endocrines system, that is about how much the
Doctors know too.

I had a Uninsured Motorist Policy with Allstate and a Umbrella Policy, that
my agent told me would cover me where the underlying coverage from my other
Allstate policies left off.  This Umbrella policy had a limit of 1 million
dollars.  My agent told me I was the best insured person he knew.  I had
trouble with Prudental Insurance earlier in my life so thought I was getting
the best with Allstate..WRONG!!

The day after the car accident Allstate said the umbrella policy does not
cover you in uninsured motorist accidents.  This is in total disagreement to
what my agent had told me for years, I asked the agent probably 5 times over
3 years, before the accident, to send me the copy of the policy. Some how it
never showed up , even though he claimed he told the company to send it.
All I ever got was a little brochure that said nothing except your in good
hands with Allstate.

My lawyer after collecting a third on the $100,000.00 underlying coverage
Uninsured Motorist policy has done nothing.. I did not need him to collect
that amount, Allstate even told me they would pay the maximum on the
underlying coverage, it was a no brainier.  I did however need a Lawyer to
fight the Umbrella Policy coverage dispute, and of course the Attorneys all
wanted the easy underlying coverage before the would do the hard part. All
the Attorneys I consulted said I had a legitimate case and that Allstate had
been doing this foe years.

I live in Alaska and with the small population, and my Attorney being a one
man office, I think he may be afraid to take on the case because to win he
has to really stick it to Allstate and may effect his future dealings with
the company. Of course before signing up the Attorney said how good he was
and I would have no problems. He would take care of everything, this was
before I ever knew what a mess I was getting into.

In the mean time I have been injured for almost 6 years, flat on my back for
4 years, unable to even get out of the house because of my physical
condition as a direct result of this accident.

I am out of money, up to my neck in bills and facing losing property in the
next few months that I have been working all my life to pay off and pass on
to my children..

My lawyer won't return my calls, I can't get a new lawyer because that
lawyer would be entitled to a third of the settlement as well as my present
attorney getting a third of any settlement, with costs I would be left with

Allstate does not care, the money sits in the bank getting interest on
interest and I am just a one person that can not do a thing to make this
situation move. If my case does settle my Attorney is making interest on the
settlement from the day of the accident.  So WHO CARES NOBODY...  Can I do
anything, NO. Does anyone listen NO.

I bought these policies to protect my wife and 4 kids, I trusted this
company, all my insurance policies, Life, Home, Rental, Auto, Liabilty and a
Health Rider on the Auto, was and still is with Allstate to keep continuity
in coverage.

I wanted to be sure there would be no problems if we ever had a claim. I
kept in touch with my agent every 6 months to keep abreast of my coverage.
I even went so far as to try and hire a Attorney to look over the policies
to see if there was a problem, they laughed and said thats what litigation
is for.

My agent was a "nice man", had actually wrote insurance for my family for 15
years or more, I just think he had no idea what he was writing when it came
to the policies, except of course for Life Insurance, the big money maker
for the agent. The agent has made many mistakes I have caught on our Home
and Rental policies, I thought I could trust him though. He ran like a
scalded dog.  The part about him backing me up if I ever had a problem with
the company..forget it.  Just claimed he never said the policy covered me
for uninsured motorist, when in fact he told me to carry no more then
$100,000.00 underlying coverage because it was a waste of money, your
Umbrella policy covers you. Additional coverage to 2 million dollars is
available, and cheap, I think they don't want to write it and most people
will never have to try and collect on the Umbrella Policy, they roll the
dice and Allstate wins and the consumer and I lose big time.

In short I did everything to make sure that my family would be protected if
I were unable to provide.  Now I rot away a little more everyday,I can't get
to the medical centers I need to for possible help, my family is suffering
terribly under this weight, my kids are hungry, going without medical care
they need and growing up in a way I never dreamed I my worse nightmares.  I
would do anything to bring in money, pick up soda cans if that is what it
took. I am only able to function at the lowest levels, this letter will wipe
me out for the day, maybe 2 and has taken hours to write.  I used to be a
pilot flying het aircraft and writing manuals that the F.A.A had to approve
and supervised other pilots, now I am nothing.

I have always worked hard, I owned a construction company in my 20's till a
back injury and Prudential Insurance not covering my medical bills made me
lose all the heavy equipment I had almost (90%) paid off, had to sell for
bills. Prudential later lost that case in court and had to pay the medical
bills but that did not replace what I had lost.

4 spinal fusions and removal of my left kidney and 5 years of recuperation
later I became a commercial pilot. I moved to Alaska, land of my dreams and
rose up quickly to be flying Captain and serving as Director of Operations
for a air ambulance company. Flying for hospitals doing medivacs, was a very
satisfying job, combining my love of aviation and using those skills to the
maximum to help people when they need it most. I saved lives and prevented
suffering from the skills in my hands, it was very gratifying. I also flew
the bush on the side in float planes taking people rafting, fishing etc.
Life was good.

Then they found a supposedly inoperable brain tumor in 1992, every major
medical center from the Mayo Clinic on down told me I had 6 months to live.
3 months after discovering the tumor I found a Doctor in Tokyo Japan, he
flew to L.A. and God gave me a miracle and He and the Surgeon took the non
cancerous tumor away. Complete recovery, 6 months after the operation the
kid with a revoked operators permit from over 10 DUI's with a suspended
permit hit me with his car.

Enter Allstate, exit my life.

I am lucky to get from the bed to the couch, I have fractured vertebrae that
can't be repaired because I am to weak for surgery, I am in terrible pain, I
can't keep food down because of the naseau. I have had at least 30 episodes
of "adrenal crises".  Your blood pressure drops, your breathing stops and
you go unconscious. Luckily someone has found me everytime and given me a
injection that brings you out of this crisis I say luckly, I am at the point
I don't care anymore, of course Allstate has my Life Insurance policy so
even if I died today they probably would not pay my family.

How do we stop a company from this type of practice, I am not the only one.
Allstate just lost a huge class action suit in Alaska about a year ago over
uninsured motorist coverage.

Their Umbrella Insurance policy they now say does not cover Uninsured
Motorist, but Farmers Insurance Umbrella policy does, Farmer's writes a
major portion of Alaska insurance, so what this means is Allstate is getting
a unfair advantage, advertising their Umbrella and the public thinking it
covers the same as Farmers but when it comes time to pay, the poor policy
holder gets nothing.  So Allstate just keeps pocketing the money and if
someone complains, oh well, Allstate is not going to be hurt

I brought this situation to the State of Alaska Insurance Commission, all
they could say is it belongs in court. Lot of help from them.

So what can do to help, I am at the end of my lifeline here, how can I
justify my family and children losing everything I have worked for to help
them get by in the future just to get me by for now. It's not worth it.

This company is evil, I compliment you on your efforts on putting up this
page and for free.  Drop me a line and I will see what I can do to help
others from falling in to this situation I am in now.  I have very little
energy but will help where I can, Greetings from Big Lake Alaska Geoff

P.S And if Allstate is reading this letter REMEMBER ONE DAY YOU WILL BE SICK
meet his maker, Allstate man when you meet yours what will you tell him, he
knows everything you do.

Greetings From Big lake Alaska
Geoff   geoffrey@alaska.net



This is also on the site, but it got buried.  It's an older letter so I
don't know if this is still an issue with them, but it's also a good quick
intro to Allstate's MIST program, which we like to mention now and then.

Subject: Re: Allstate MIST program
Date: Sun, 23 Aug 1998 09:27:42 -0700
From: srlaw@earthlink.net Organization: Sobol &Raldiris
To: kana@fcol.com


Our office represents an Allstate Insurance Company Uninsured Motorist
policyholder in an action set for jury trial on October 6, 1998 in the
Federal District Court, Central District, in Los Angeles, California.

The action challenges the legality of Allstate's MIST (Minor Impact Soft
Tissue) claims handling practices. It is alleged that Allstate will
designate certain automobile bodily injury claims to be handled under strict
MIST case handling practices which include delaying the handling of the
claim, excessive and intrusive invistigations of the claimant and claimant's
family members, attempts to invade claimant's privacy rights regarding prior
unrelated psychological, alcohol or substance abuse records, unreasonably
low settlement offers, unnecessary medical examinations, forcing the
arbitration of claims where libility is reasonably clear, paying claimants
reasonable policy benefits due only after being ordered to do so by a Judge,
and hiring so called "biomechanical" experts witnesses to testify that it
was scientifically impossible for the claimant to have suffered bodily

We are seeking other Allstate Uninsured Motorist policyholders or their
attorneys, who have been subjected to any of these alleged MIST practices as
witnesses to establish that our client's claim is not an isolated event but
a wide ranging scheme of Allstate Insurance Company to defraud California
policyholders out of their legal entitlement to uninsured motorist bodily
injury insurance policy benefits. If you can be of any assistance, please
contact our office at (818)547-6650 or E-Mail us at srlaw@earthlink.net

Thank you,

Law Offices of Sobol &Raldiris

Oddly enough, the MIST manual is for sale on the net at a site called the
Allstate Information Exchange.  We cannot endorse the site that sells it,
since they charge for access, and even more for the manual,  which we won't
pay, and they are not terribly cooperative, but we feel we should mention
them as a service to our readers.  We really don't know what's there, but
they do claim to have this manual for sale.  We would also like to
empahasize that they did not get this manual from us or from anyone
associated with us.  We have no idea how they came by it -- possibly a
disgruntled agent or employee -- Allstate has a Lot of those.  The site that
says they have the manual for sale is at http://www.aunt.com

We assume they have Something, because Allstate is even more upset about
their site than about ours, and has tried to attack two or our own
correspondents whom they surmised had something to do with this site, even
though they did not.

Although this site has the manual, most of their other info is a bit stale
or borrowed from us, including most of the book they are selling, which is
really just a download of part of our site -- so don't buy that ;')  If you
are an attorney, the MIST manual might be useful, though.

To quote this site, though:

"Only AIE Members can access Level 3. Sensitive Allstate documents, manuals
and evidence are located in Level 3. A lawyers dream(assuming they do not
represent Allstate)awaits in the form of important damaging evidence that
can be viewed and downloaded. Extensive valuable information is made
available by literally hundreds of people working for and against Allstate.
The site contains thousands of pages of documents, products, contacts, and
links an attorney, investigator, insured or claimant may find significant,
beneficial and priceless.

A must for those who want to be well armed with Allstate documents that
until now were mostly unavailable to the public. Catch Allstate and its
deceptive litigators red handed when they knowingly and with bold-face lie
to the judge or jury.

Many Level 3 documents detail the SOP of Allstate and its "Colussus"
computer mainframe. This is where the online Allstate SIU MIST Manual
revealed: Allstate's program to convince the insured or claimant not to hire
a lawyer. Allstate's program to track and rate lawyers and doctors, then to
pay a claim based on the ability of the claimants attorney or doctor, rather
then on the merits of the loss. Allstate's program to redline and
discriminate against predetermined insured or claimant groups."

Again, we have not been there, so it is up to you to judge this material for
yourself.  We're not paying for access after doing a ton of our own research
and graciously loaning them much of our own material with no reciprocity as



Jim and Paula

Please come to Cyber Vigilante at
And find out why you're NOT insured

(  To subscribe or unsubscribe from our newsletter,
    please write  us at kana@fcol.com  )

                              YET MORE

From kana@fcol.com
Date: Tue, 24 Nov 1998 20:00:20 -0500
From: Jim & Paula 
Subject: Innocence for Sale

Dick Larkin CLU, is the founder of NAPAA (National Association of
Professional Allstate Agents). You may recognize his name from the
"Stalked by Allstate" article from Fortune magazine, which is mirrored
on our site. He has written an excellent article on -- well -- the whole
ball of wax.

It details the massive corruption in the now-merging banking and
insurance industries, coupled with multmillion dollar settlements for
terrible wrongdoing which are paid by banks and insurers, but for which
guilt is neither admitted nor known to the general public. Also outlined
is the increasing suppression of insurance agents who try to protect
their customers.

There is an analysis of the enervation of so-called "protective"
agencies in relation to these enormous companies, whose merged size is
putting them far out of control by any single agency or state
government. Names are named and figures are given.

Much of this has been covered in our own pages, but this brings it all
togeher in a very incisive and readable manner.  The article, "Innocence
for Sale," which was originally published in the CEAA journal (Coalition
of Exclusive Agent Associations) is now available on our website at:


You should be able to click the line above to go there if you have a
current email program.  Otherwise, paste the URL into your browser.  It
is well worth reading.

Jim Mooney and Paula Moran, the webmasters

Come "You're In Bad Hands With Allstate" (and others)
at http://www.insurancejustice.com/
and find out why you're NOT insured

                              YET MORE
From kana@fcol.comMon Dec 14 06:05:07 1998
Date: Tue, 8 Dec 1998 21:25:58 -0500
From: kana@fcol.com
To: The Insurer Crime List 
Subject: Penn. Atty General files suit vs Allstate

Tuesday December 8, 7:36 pm Eastern Time

Penn. Atty General files suit vs Allstate

HARRISBURG, Pa., Dec 8 (Reuters) - Pennsylvania Attorney 
General Mike Fisher said Tuesday the state filed a lawsuit against 
Allstate Insurance, alleging that it illegally attempted to dissuade 
Pennsylvania consumers from obtaining legal counsel to settle 
their personal injury or property claims against Allstate 

Fisher said in a statement the suit alleges that Allstate Insurance 
Co. violated the Unfair Trade Practices and Consumer Protection 
Law and engaged in the unauthorized practice of law.

According to the investigation, the defendant since 1995 has 
contacted Pennsylvania consumers who were not insured by 
Allstate, to inform them of the benefits of allowing the company to 
settle their claims without hiring an attorney.

``I find it hard to believe that this insurance company can at the 
same time represent its policyholders and the very people who 
were injured. That's just nonsense,'' Fisher said in a statement.

The suit also alleges that Allstate used deceptive tactics to 
convince consumers to allow the company full access to their 
medical and employment records.

The suit asks the court to issue a permanent injunction prohibiting 
Allstate from engaging in deceptive claims practices, including 
designating itself orally or in writing as the claims representative of 
a potential claimant.

It also asks the court to require Allstate to pay a $1,000 civil 
penalty per violation and a $3,000 penalty for each violation 
involving a person age 60 or older.

The suit was filed in Commonwealth Court in Philadelphia.

Allstate said in a separate statement that it disagreed with the 
accusations in the suit and said that it felt its use of its claims 
information is protected by the First Amendment of the Constitution.

The Northbrook, Ill.-based company's stock closed Tuesday at 39-
7/8, down 1-7/16. 

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Created: October 16, 1998
Last Updated: May 28, 2000