Herbert Subin
Citing a trove of internal emails and messages among alleged conspirators, an insurance company sued a New York personal-injury lawyer and the head of a lawsuit-funding firm, accusing them of operating a “referral machine” that directed clients to hand-picked doctors for unnecessary procedures designed to drive up settlement values.
Accredited Surety and Casualty Co. sued attorney Herbert Subin and Neal Magnus, owner of several funding firms, for fraud and allegedly violating a New York law prohibiting lawyers from deceiving the court. Among other claims cited, two workers sued over an incident involving a bathtub on the stairs, with widely different accounts of how they were injured.
This latest lawsuit comes after state and federal courts have dismissed similar lawsuits against Subin under federal racketeering law, saying insurers failed to show they were directly injured by the alleged conspiracy. By citing state law and including companies that were sued by their workers, lawyers at Willis Law Firm are hoping this case can survive dismissal.
The lawsuit filed October 7 cites seven specific cases but says there are at least 248 more showing a similar pattern of workplace or slip-and-fall injuries where Subin directed clients to specific medical providers funded by Magnus.
Insurance companies have traced similar rings of lawyers, doctors and funders in New York and elsewhere, where doctors are paid cash for procedures by funders who hold a lien against any money the client recovers in court. Insurers say the practice inflates verdicts and settlements since the doctors have an incentive to perform unnecessary procedures that the lawyer then presents as evidence for higher damages in court.
In this case, Accredited cites a sworn statement by Steven Weissbluth, the non-physician manager of All Boro Medical Rehabilitation, a clinic that received a steady stream of referrals from the Subin firm. In that statement and emails and messages, Weissbluth discusses where to send Subin clients and which treatments they should receive. Weissbluth’s statements are also featured prominently in a lawsuit by New York Marine & General Insurance Company.
Weissbluth said he was recruited to run All Boro by Magnus and introduced to Subin, who promised “the entirety of the referral stream to All Boro.”
From 2016 to 2025 all imaging referrals from All Boro were to Dr. Thomas Kolb, who has also been sued multiple times for allegedly providing fraudulent diagnoses to justify surgery. All the surgeons on All Boro’s referral list were selected by Subin, Accredited says, as part of what it calls the “Subin blueprint.”
The messages between Weissbluth and Subin show the lawyer checking on the availability of surgeons, guaranteeing payment and moving patients from one doctor to another based on funding. Others show Weissbluth conferring with non-physicians over patient care. In one 2021 exchange Weissbluth and Jorge Lupi, owner of a medical lien provider, decided to order a lumbar MRI for a “trip and fall” plaintiff named Pedro Garcia.
“Because every All Boro referral decision – and therefore every downstream Kolb imaging study and every shortlist surgical consult – was dictated by the claimants’ own attorney rather than by any exercise of independent medical judgment, the medical records generated by All Boro and Kolb are not evidence of injury; they are the intended work product of attorney-directed deceit and collusion, created for litigation to be presented as neutral medical proof,” Accredited says.
As in other cases of alleged insurance fraud, All Boro and affiliated providers didn’t accept private insurance, only workers comp coverage or funding backed by medical liens. That gives everyone involved a financial incentive to submit inflated claims, the insurer says.
Jefferson Alberto Pua Posales claimed he was injured carrying a bathtub up the stairs. After being referred to Subin-affiliated providers, he claimed a meniscal tear in his knee, torn ligaments, a disc bulge and herniation in his back. Worker Adrian Zambrano claims he was injured in the same bathtub-on-the-stairs incident except his medical records say he was struck by a metal sheet, a heavy metal beam, or that “the ceiling came down on him.”
Plaintiff Cristian Vimos said he was struck in the head in September 2021 by a metal form, although Capital Concrete’s records from the time say the form hit his left shoulder and middle finger. Vimos hired Subin a month later, was sent to All Boro and on to surgeons from Subin’s list. A non-physician later changed his workers’ compensation request to 100% disability and Vimos is now seeking $4.8 million for wrist, back and knee injuries.
Helber Perez said he fell from a platform in 2022 and hired Subin, who apparently had doubts about the value of the case. An email between two non-physician employees at All Boro shows they were ordered to halt treatment for Perez because “Subin isn’t taking the case.”
In August 2025, Subin attorney Mark Meleka asked to withdraw from Posales’s case, citing the New York Rules of Professional Conduct. The firm ultimately withdrew from hundreds of cases, and in January of this year the Subin firm was disbanded and a new one began operations at the same address.
