A lawsuit has been filed against a New York-based medical supply company and its owner, alleging their involvement in an insurance fraud scheme. The lawsuit filed by Allstate Insurance Company and its affiliates names Healthy Elite Inc., its principal Eddie Kemelman, and several unnamed defendants.
The lawsuit claims that beginning in June 2022, the defendants engaged in fraudulent conduct to exploit New York State's No-fault insurance system. The complaint states that the defendants submitted hundreds of claims for durable medical equipment (DME), including Continuous Passive Motion machines and compression devices, totaling more than $192,000. The claims were allegedly submitted without regard to medical necessity and involved payments to clinics in exchange for prescribing the equipment. According to the complaint, these prescriptions were part of a predetermined treatment protocol intended to maximize reimbursement from insurers.
The complaint further states that Healthy Elite operated under the appearance of legitimacy while coordinating with various no-fault clinics across New York. These clinics allegedly issued generic prescriptions to ensure patients received unnecessary DME. The filing also cites regulatory violations related to billing practices that did not comply with established fee schedules.
The plaintiffs are seeking recovery of funds paid due to the alleged fraudulent claims, as well as treble damages under the Racketeer Influenced and Corrupt Organizations Act (RICO). The plaintiffs are also seeking a declaratory judgment that would relieve them from liability for any outstanding claims submitted by Healthy Elite. The complaint alleges that the defendants misrepresented the nature and necessity of the medical equipment in violation of both state and federal laws.
The plaintiffs are represented by attorneys from Manning & Kass, Ellrod, Ramirez, Trester LLP. The case was filed in the United States District Court for the Eastern District of New York under Case ID 25-CV-3244.