On June 11, 2010 Geico filed a $1.8 million lawsuit, accusing aQueens, New York radiology center of a no-fault auto insurance fraud scheme that involved thousands ofsuspect claims for service.

The ten defendants implicated in the suit were not identified byname, but the auto insurer did confirm (via a press release) thatthe radiology center, its non-physician owner, two medicalcorporations, two doctors, two lawyers, and a Long Island-based lawfirm all stand accused of misdeeds.

Geico's Special Investigations Unit (SIU) was able to pinpointthe fraud based on a systemic pattern of irregular and repetitivebilling for radiology services, as well as the filing ofduplicative litigation against the company using forged documentsto support their prosecution.

In the lawsuit, the auto insurer seeks to recover more than $1.8million from the defendants in compensatory and treble damages, aswell as punitive damages.

"Geico has a zero tolerance policy when it comes to insurancefraud," said Seth Ingall, regional vice president of Geico'sWoodbury, N.Y. office. "[We] will take decisive and immediateaction against any individual seeking to recover payments made andto deter fraudulent activity."

Ingall added that this litigation represents a "preview offurther lawsuits" the insurer intends to file to not only recoupfraudulently induced payments but also to deter others fromcommitting fraud.

According to the Insurance Information Institute (III), no-faultfraudulent claims in New York are 111 percent higher than thenational average.

Source: Geico