Seven Allstate entities have filed a federal lawsuit alleging a large-scale auto insurance fraud operation involving a Houston-area family and a network of healthcare-related businesses.
The complaint, filed April 10, 2026, in the U.S. District Court for the Southern District of Texas, names four members of the Roopani family: Sohail Roopani, Anil Roopani, Rahil Roopani, M.D., and Barketali Roopani. The suit also names at least 16 associated entities, including medical practices, imaging centers, and management companies operating in the Houston area.
According to the filing, the defendants allegedly operated a network of healthcare businesses through multiple management entities, including Sunny Trail Investments, LLC, doing business as Edloe Ventures, and Edloe Health, LLC. The complaint states that these entities controlled operations such as Core MD Management, Edloe Imaging locations, and several pain management and orthopedic clinics.
Allstate alleges the businesses billed for unnecessary medical services, failed to perform services as represented, or provided services in violation of Texas law. The insurer claims it paid $426,960.67 directly to the defendants and an additional $7,478,757.76 tied to bodily injury claims. The complaint states these payments were based on what Allstate describes as false medical documentation connected to auto insurance claims.
The lawsuit outlines an alleged corporate structure designed to conceal ownership and control. Three of the four named family members are identified in the filing as unlicensed individuals. The fourth, Rahil Roopani, M.D., is described as a nominal figurehead who allegedly did not actively participate in patient care or medical decision-making.
The complaint also details alleged referral practices. It states that cooperating chiropractors used pre-printed forms to refer patients into the network for predetermined treatment plans, regardless of individual medical need. The filing characterizes these actions as unlawful self-referrals and solicitation.
Allstate references its policy language in the complaint, noting that coverage does not apply to medically unnecessary treatments, fraudulent billing, or services that violate state law. The insurer argues that the alleged conduct constitutes a material breach of policy terms that would have resulted in claim denials had they been known at the time.
The lawsuit includes claims under the federal Racketeer Influenced and Corrupt Organizations Act, as well as allegations of fraud and conspiracy. Allstate is seeking treble damages, injunctive relief, and a declaration that the defendants are not entitled to collect on any pending or future claims under Allstate policies.
No determination on the merits has been made. The case remains in its early stages.
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