Allstate Insurance Awarded $3.8 Million in Trial Against RICO Violators

After a 6-week jury trial, the United States District Court for the Northern District of Texas ruled that defendants in a RICO violations trial would pay $3.8 million to Allstate, whom they defrauded.

The jury found Michael Kent Plambeck, D.C., Jennifer Giessner, Douglas Friedman, Randal Toca, and other persons and entities guilty of racketeering, in violation of the Federal Racketeering Influenced and Corrupt Organizations Act (RICO), and the Ohio Corrupt Practices Act.

“Insurance fraud affects all policyholder’s premiums, and it’s not fair for consumers to pay higher rates for this type of behavior,” says Allstate Spokesperson Michelle Therrien. “We are committed to protecting our customers from being victimized by this type of fraud.”

The RICO lawsuit alleged that an intricate network, spanning multiple states, involved chiropractic clinics, law offices, and telemarketing businesses in Texas, Ohio, Louisiana, Alabama, and other states. Allstate claimed that the network solicited people who had been in automobile accidents, gave them unnecessary treatment, then referred them to personal injury lawfirms in order to file claims against Allstate. The insurance company presented evidence of interstate communications and financial transactions – which led to charges of wire and bank fraud – used to facilitate the scheme.

“This case demonstrates our commitment to fight fraud wherever it lives and the victory is a testament to our zero-tolerance approach in the fight against insurance fraud,” Therrien said.

Defending Racketeer Influenced And Corrupt Organizations Claims

RICO cases are complex criminal cases.  They involve serious criminal charges and life altering potential consequences.  Centrally located in Columbia, South Carolina, the lawyers at the Strom Law Firm, LLC have the experience, and the resources necessary to assist our clients in RICO cases. RICO charges involve the operation of an illegal business or enterprise, including a fraudulent scams, for an individual or entity’s personal profit. RICO offenses can include, but are not limited to

• Gambling
• Murder
• Kidnapping
• Extortion
• Arson
• Robbery
• Bribery
• Embezzlment
• Money laudering
• Acts of terrorism

The Strom Law Firm Can Help with RICO Defense in South Carolina

Racketeering refers to illegal acts carried out by leaders of an organization or syndicate in which they can be tried for crimes that they ordered or assisted with, without having to actually commit the crime themselves. For example, if someone orders another to kill a person, that person may be charged with racketeering. The consequences for a RICO conviction are harsh.  Possible penalties may include:

• Prison time (up to twenty years for each violation)
• Mandatory probation/parole/house arrest/counseling
• Loss of certain constitutional rights
• Forfeiture of assets
• Large fines
• Restitution paid to victims

Given the possible consequences at stake, it is critical that you contact a RICO defense attorney who can protect your rights and provide you an aggressive and well planned defense against murder charges, kidnapping indictments, or wire fraud charges. Contact the criminal defense attorneys at the Strom Law Firm, LLC for a free consultation to discuss the facts of your case. 803.252.4800