LOS ANGELES, Sept. 7 (UPI) -- California regulators accuse PacifiCare of violating state law almost 1 million times and propose fines of up to $9.9 billion, court records show.

Citing court filings and other documents, the Los Angeles Times reported Tuesday the California Department of Insurance accuses PacifiCare of mismanaging medical claims, losing thousands of patient records and failing to pay doctors. The department accuses the health insurer of violating state law 992,936 times between 2006 and 2008, following its acquisition by UnitedHealth Group Inc. in a $9.2 billion deal.

Adam Cole, the insurance department's general counsel, called the situation "a story of intense corporate greed."

"This is about intentional disregard for the interests of doctors, hospitals and patients in California, and the pursuit of cutting costs at any means possible," Cole said.

PacifiCare and UnitedHealth Group said they were fighting the proposed fines in a proceeding that began 10 months ago and could be resolved by October, the newspaper said. The companies said the errors cited by the state are mostly administrative matters that did not cause substantial harm.

PacifiCare spokeswoman Cheryl Randolph said allegations about claims processing "are simply not true."

"By all objective measures, PacifiCare pays its claims timely and accurately," Randolph said.

PacifiCare insures more than 1 million people in California.

The state is seeking fines of as much as $10,000 for each alleged violation.