Crime Doesn't Pay - Allstate to Have Judgment Against Fraudsters

Fraud Perpetrators Will Have Judgment Entered in Favor of Insurer They Defrauded
Post 5155

Allstate Effectively Proactive Against Insurance Fraud

Plaintiffs Allstate Insurance Company and other Allstate companies (collectively, “Plaintiffs”) sued seeking redress for losses incurred due to an alleged insurance fraud scheme. Plaintiffs alleged that Defendants Toshner, Lacey Davies, Michael Trinh, Roadside Response, LLC, and Responsible Billing, LLC's (collectively, “Defendants”) submitted false reimbursement claims for hazardous material cleanups that were never actually performed, were unnecessary, or did not involve an Allstate insured.

In Allstate Insurance Company, et al. v. Daniel Toshner, et al., No. 1:24-CV-27-RP, United States District Court, W.D. Texas, Austin Division (July 9, 2025) Allstate moved for default to be entered against the defendants.

BACKGROUND

Although Defendants initially appeared in this lawsuit their counsel later moved to withdraw from his representation of Defendants. The Court granted counsel's motion to withdraw and ordered Defendants to retain new counsel by a specific deadline, noting that while Defendants Toshner, Davies, and Trinh could represent themselves pro se, the corporate defendants could not. The Court also granted Plaintiffs' motion to compel discovery responses from Defendants and afforded Defendants 60 days to respond to the at-issue discovery requests.  When Defendants did not retain counsel or comply with their discovery obligations by the deadline the Defendants did not respond to the court.

DISCUSSION

Plaintiffs moved for entry of default against Defendants which the Clerk of Court entered. Toshner, proceeding pro se, then filed the instant motion to set aside the default entered against him.

Because no party has filed timely objections, the Court found no clear error and the Court denied Toshner's motion to set aside the default entered against him.

Further, now that the Clerk of the Court has entered default against all Defendants, the next step in this litigation is for Plaintiffs to move for default judgment against Defendants. Plaintiffs have received an entry of default as to all Defendants.

Plaintiffs have yet to complete the second step in the process by moving for default judgment. Under the Court's Local Rules, the Court ordered that Plaintiffs move for default judgment against Defendants on or before July 30, 2025.

ZALMA OPINION

Because state prosecutors are often unwilling to charge fraud perpetrators for their actions defrauding insurers, Allstate and other insurers are becoming proactive and sue the fraud perpetrators for major damages. In this case the fraudsters lawyer refused to represent them and withdrew and they did not get new counsel to defend. Default was entered and Allstate will produce evidence and receive a judgment against each of the fraudsters that they can then execute against any assets held by the fraudster defendants.

(c) 2025 Barry Zalma & ClaimSchool, Inc.

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