Gravely & Pearson, LLP Alleges Widespread Allstate Abuse for Hundreds of San Antonio Area Policyholders
"We believe that over the course of several years, Allstate's policyholders were systematically underpaid for the foundation and water damage to their homes," said Pearson. According to the Federal Bureau of Investigation (FBI) over four hundred San Antonio households had claims handled by Bruton where fraudulent payments were made to Villarreal's company and the funds were kicked back to Bruton. As part of their sentencing, Bruton and Villarreal were ordered to pay back over one million dollars in restitution. "We believe this money ought to go to the policyholders that were victims of Allstate's systematic underpayment," says Pearson.
Gravely & Pearson, LLP Alleges Widespread Allstate Abuse for Hundreds of San Antonio Area Policyholders
Thursday November 9, 11:11 am ET
SAN ANTONIO, Nov. 9 /PRNewswire/ -- Gravely & Pearson, LLP filed two lawsuits today against Allstate Texas Lloyds, a subsidiary of Allstate Insurance Company, alleging widespread claims abuse in Texas by the insurance company. "Over 400 policyholders in San Antonio have been affected by Allstate's conduct," said Matthew R. Pearson, counsel for the plaintiffs. One former Allstate adjuster has been sentenced to prison for his role in the fraud. Chandler Bruton, formerly of the Allstate Foundation Unit in San Antonio, was sentenced to thirty months imprisonment by federal Judge Fred Biery on August 16, 2006. A former Allstate vendor, Rudy Villarreal d/b/a Villarreal Construction, has also been sentenced by Judge Fred Biery for his role in the scheme.
"We believe that over the course of several years, Allstate's policyholders were systematically underpaid for the foundation and water damage to their homes," said Pearson. According to the Federal Bureau of Investigation (FBI) over four hundred San Antonio households had claims handled by Bruton where fraudulent payments were made to Villarreal's company and the funds were kicked back to Bruton. As part of their sentencing, Bruton and Villarreal were ordered to pay back over one million dollars in restitution. "We believe this money ought to go to the policyholders that were victims of Allstate's systematic underpayment," says Pearson.
Marc E. Gravely, counsel for the plaintiff adds, "When Bruton and Villarreal were sentenced for their part in the fraud, our clients had hoped that they would have heard from Allstate about additional repairs or had their policy premiums lowered. Neither has happened."
The two new suits against Allstate allege damage to the homes that Allstate failed to address. According to the filings, Allstate failed to address the damage to the homes and saved millions in claims payouts by shortchanging its homeowners. Allstate philosophy towards its policyholders has gone from "Good Hands to Boxing Gloves," says Gravely.
Gravely & Pearson, LLP also represent former Allstate fraud investigator Fred Klecka who discovered the fraud and reported it to the authorities.
"Our client was told by his superiors at Allstate not to cooperate with the FBI in their investigation of these claims, and was fired when he refused to comply with this unlawful order," said Gravely.
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