Madison - St. Clair Record

Thursday, October 17, 2019

Disabled beneficiary sues Allsup over alleged Social Security fraud

By Carol Ostrow | Sep 21, 2015

A St. Clair County resident is suing an Illinois corporation alleging breach of fiduciary duty and fraud in a disability benefits compliance issue beginning in 2010.

Linda Cramer filed a lawsuit on Aug. 18 in St. Clair County Circuit Court against Allsup Inc. of Belleville, with Aetna Life Insurance Company listed as a respondent in discovery, in a Social Security Disability Insurance (SSDI) benefits dispute dating to August 2010.

According to the complaint, Cramer became disabled on or about Aug. 1, 2010 and was approved for long-term disability insurance benefits by her then-current employer’s provider, Aetna. When asked by Aetna to apply for continued benefits through Allsup, the suit states, she complied on or about Nov. 23, 2010.

The lawsuit states that Cramer was granted benefits on or about Feb. 21, 2011. She claims received notice from Allsup on March 3 that she would be awarded retroactive benefits in the amount of $8,718.00, but then was informed by Aetna on March 8 that she had been allegedly overpaid in the amount of $8,805.18.

The suit states that Allsup, believing a creditor-debtor relationship existed between Aetna and the plaintiff, unlawfully withdrew funds from the plaintiff’s bank account, claiming that it forwarded a portion to Aetna and keeping the rest.

Cramer accuses the defendant with breach of fiduciary duty, fraudulent misrepresentation and concealment—failing to disclose conflicts of interest and material facts, and striving to reduce or eliminate the plaintiff’s bargaining power, as well as failing to refund the balance.

Claiming compensatory, exemplary, punitive and pecuniary damages as a direct and proximate result of the defendant’s actions, the plaintiff seeks judgment in her favor for more than $50,000 plus attorneys’ fees and costs. Cramer is represented by Michael Garavalia of Flynn, Guymon & Garavalia in Belleville.

St. Clair County Circuit Court case number 15-L-460

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