Geico Files $1.8M Lawsuit over Alleged No-Fault Fraud in New York

June 14, 2010

Insurer Geico has filed a $1.8 million lawsuit alleging a Queens radiology center orchestrated a no-fault auto insurance fraud scheme that involved thousands of suspect claims for service.

Geico did not identify the 10 defendants by name, but said they include the radiology center, its non-physician owner, two medical corporations, two doctors, two lawyers and a Long Island-based law firm.

The suit seeks recovery of more than $1.8 million in compensatory and treble damages, as well as punitive damages.

Geico said its special investigations unit identified the fraud based upon a systemic pattern of irregular and repetitive billing for radiology services and the filing of litigation against the company using forged documents to support their prosecution.

“GEICO has a zero tolerance policy when it comes to insurance fraud,” said Seth Ingall, regional vice president of GEICO’s Woodbury, N.Y. office. “GEICO will take decisive and immediate action against any individual seeking to recover payments made and to deter fraudulent activity.”

Ingall said the lawsuit is a “a preview of further lawsuits that GEICO intends to file to recover fraudulently induced payments and to deter fraudulent activity.”


Source: Geico

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