Allstate Sues Well Known Senior Physician Following Fraud Investigation

F.J. Thomas

Detroit, MI ( – Insurance giant Allstate has filed suit against two pain clinics and two related physicians following an extensive investigation by the US Department of Justice.

According to reports, Allstate filed suit against Pain Center USA, Interventional Pain Center, and physicians Eric Backos, M.D. and Rajendra Bothra, M.D. for $860,000 in damages. The action comes on the heels of several other healthcare clinic lawsuits the insurance company has filed totaling 3.5 million in damages. Based on the investigation, there may several more lawsuits to come.

Bothra is not the typical medical provider charged with fraud and pushing pain medication. The 77-year-old had served as chief of Surgery at Holy Cross Hospital in Detroit and was co-chairman of the Asian-American Coalition for the United States presidential election in 1988. In 1999, he was awarded the fourth highest Padma Shri award by the Indian Government. In addition, he was active in raising awareness of HIV/AIDS and substance abuse. In addition to all his humanitarian efforts, Bothra adopted a daughter from Mother Teresa’s orphanage in India.

In January of this year, Bothra set records again when he was released on a record-breaking 7 million dollar bond after being charged with health care fraud conspiracy, aiding and abetting health care fraud, conspiracy to distribute controlled substances and unlawful distribution of controlled substances in December.

According to the Detroit News, there may be more than meets the eye when it comes to Bothra. Among his $35 million in assets was an island and several overseas banking accounts. Per the newspaper, Bothra is accused of injecting as many as 70 patients a day that did not meet medical necessity. In addition, Bothra was accused of lying about assets and international business interests.

Backos is a Physical Medicine and Rehab specialist in Warren, Mich., and had been in practice for 38 years. He was charged with 11 counts of healthcare fraud conspiracy, 1 count of distribution and intent to distribute controlled substances, a 5 counts of aiding and abetting healthcare fraud, and 4 counts of aiding and abetting distribution of a controlled substance.

From 2013 to 2018, Backos was alleged to have prescribed 5.9 million pills of which 86 percent were in the same category as fentanyl and oxycodone. In fact, authorities say Backos prescribed more opioids than any other provider charged in the investigation. Three of Backos’ patients died of overdoses in a 14-month period.

As a condition of bond, neither physician is allowed to prescribe controlled substances, or bill Federal insurers.

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