Allstate sues over $7.9 million in alleged auto insurance fraud tied to sham medical network

Allstate is seeking to recover $7.9 million in payments it says were extracted through a fraudulent medical network tied to auto insurance claims in Houston. The insurer paid $426,960.67 directly to providers and an additional $7,478,757.76 in bodily injury claims based on what it alleges was false medical documentation. This money flowed through a network of clinics, imaging centers, and management companies allegedly controlled by the Roopani family — three of whom have no medical license. The fourth, Rahil Roopani, M.D., is described in court filings as a figurehead who did not actively participate in medical operations. Through entities like Sunny Trail Investments, LLC d/b/a Edloe Ventures and Edloe Health, LLC, the family allegedly directed patient referrals from chiropractors using pre-printed forms that prescribed fixed treatment plans regardless of medical need. These referrals fed into clinics including Core MD Management and multiple Edloe Imaging locations, where services were billed to Allstate as medically necessary despite allegedly being unnecessary, not rendered, or unlawful under Texas law. Allstate’s policies explicitly exclude coverage for such services. The insurer argues the fraud amounted to a material breach that would have triggered immediate claim denials had it been known. On April 10, 2026, Allstate filed a federal RICO lawsuit in the Southern District of Texas (Case No. 4:26-cv-02842) against the four family members and at least 16 affiliated entities. It is now seeking treble damages, injunctive relief, and a court order blocking the defendants from collecting on any current or future Allstate claims.