Allstate Insurance v. Rounsavall

Plaintiff Allstate Property and Casualty Insurance Company filed a civil lawsuit in the U.S. District Court for the Western District of Washington on August 23, 2024, against defendants Mark Rounsavall, Jennifer Rounsavall, and unnamed co-conspirators. Allstate alleges the defendants orchestrated a scheme to stage automobile accidents and submit fraudulent insurance claims for vehicle damage, bodily injury, and loss of use. The insurer claims the Rounsavalls recruited participants and utilized medical and legal professionals to inflate claims. Allstate seeks a declaratory judgment that it has no duty to pay pending claims and asserts civil violations under the federal RICO Act and Washington state law, including fraud and unjust enrichment, seeking damages exceeding $500,000 and treble damages.

The case was recently filed on August 23, 2024. No trial or final judgment has been rendered; it remains in the preliminary pleadings stage.

The core dispute is whether the defendants engaged in an organized pattern of staging car accidents and filing inflated or fraudulent insurance claims, thereby voiding coverage and entitling Allstate to damages under civil RICO and state fraud laws. The case hinges on proving a coordinated scheme to defraud.

The case highlights ongoing efforts by property and casualty insurers to combat organized insurance fraud through affirmative civil litigation rather than relying solely on criminal referrals. Such large-scale fraud schemes ultimately drive up premiums for all policyholders. A successful civil RICO claim may deter similar criminal enterprises and encourage insurers to pursue recovery more aggressively.