Kew Gardens, NY – Geico Files $1.8M Lawsuit over Alleged No-Fault Fraud

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    Photo illustrationKew Gardens, NY – 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.

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    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.”

    Geico said it is working with the New York State Insurance Department and law enforcement in the matter.

    Steven Nachman, the department’s deputy superintendent of frauds and consumer services, said it “has worked closely with Geico and other auto insurers to aggressively combat no-fault fraud as part of a comprehensive strategy including criminal enforcement, regulatory reform and support for legislative reform.”

    No-fault fraudulent claims in New York are more than double the U.S. average, according to the Insurance Information Institute.


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    11 Comments
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    PUNCH
    PUNCH
    13 years ago

    I hope geico wins this case and my auto policy premium will drop

    Anonymous
    Anonymous
    13 years ago

    99% of people shoul dbe happy to see these stories. In the long run there will be less fraud and premiums will drop.
    I have no rachmonus on those involved. They hadt the ability to earn honestly in their fields and went the wrong way.

    Anonymous
    Anonymous
    13 years ago

    Me too, insurance fraud costs all of us money. There are legal and medical mills and they take advantage of a soft insurance industry that finds it easier to pay than to argue. Kudos to geico>

    Anonymous
    Anonymous
    13 years ago

    My wife was in a fender bender. Lady in the back refused ambulance. No one hurt. Now wife is being sued for all sorts of medical nonsense, husbands lost her services (lady was 75- what services??), etc. PR lady and PR lawyer. Now going to court because they refused the 5-10k settlement offer. They want 100k. Meshuggah.

    cp
    cp
    13 years ago

    Yes, this is good news. I’m sick and tired of insurance fraud causing my premiums to go up.

    my story
    my story
    13 years ago

    A few years back, i was involved in an accident in flatbush. I was not injured, BH. At the scene, I was approached by a frum lady who gave me a business card of a medical clinic and told me to go there right away. I went, unsure why and was examined by a doctor in a dimly lit, shady looking office. He asked me if my neck hurt when i turned it to the side. i told him no. He asked me again, “does your neck hurt” I again told him no. he got upset and said, here is the plan..you come for physical therapy 4 times a week for the next 12 weeks, and you can probably get 10k from the insurance. I ran out of the place disgusted.

    GB Jew
    GB Jew
    13 years ago

    Will someone kindly take a moment to explain to this greenhorn what “compensatory and treble damages”, means please?

    Compensatory damages I understand, but what is/are “treble damages”?

    Thanks in advance.