Tuesday, September 28, 2010
Brooklyn, NY - GEICO Files 3 Suits over Suspect No-Fault Claims
Brooklyn, NY - GEICO filed three lawsuits seeking a total of $17 million from three organizations for allegedly submitting thousands of suspect no-fault fraud claims.
The Maryland-based insurance company filed suit in New York against a group of medical equipment supply companies and their attorneys, a radiology practice in Brooklyn, N.Y., and a Queens, N.Y., medical facility.
The suits seek a total of $9 million in compensatory and treble damages under the Federal RICO statute and New York common law. They also seek orders prohibiting the payment of more than $8 million dollars in unpaid claims, according to GEICO.
The first lawsuit seeks to obtain more than $750,000 in compensation and an order declaring more than $5.8 million dollars in claims illegal from defendants of the six medical equipment supply companies and their Long Island-based attorneys for allegedly exaggerating charges submitted to GEICO and misrepresenting the nature and quality of the provided goods, according to a GEICO statement.
The second lawsuit calls for $750,000 in compensation and an order expunging more than $2 million from non-physicians accused of secretly owning a Brooklyn-based radiology practice that was run for profit and without regard to patient care, the statement said.
The third lawsuit asks for more than $6.5 million in compensation and an order declaring that more than $1 million in claims filed by a Queens-based multi-disciplinary medical facilty cannot be reimbursed, according to GEICO. The suit also accuses the facility of being secretly owned by unlicensed non-physicians, the statement said.
GEICO filed these suits four months after initiating court proceedings against other defendants accused of filing fraudulent no-fault claims.
“No-fault fraud has become rampant in New York and knows no boundaries. It crosses many types of medical specialties and healthcare providers. Significant reform of the current laws and regulations that will give insurers the means to effectively combat this fraud continues to be long overdue,” Seth Ingall, GEICO’s regional vice president for New York operations, said in the statement.