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

The ten defendants implicated in the suit were not identified by name, but the auto insurer did confirm (via a press release) that the radiology center, its non-physician owner, two medical corporations, two doctors, two lawyers, and a Long Island-based law firm all stand accused of misdeeds.

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

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

"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. "[We] will take decisive and immediate action against any individual seeking to recover payments made and to deter fraudulent activity."

Ingall added that this litigation represents a "preview of further lawsuits" the insurer intends to file to not only recoup fraudulently induced payments but also to deter others from committing fraud.

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

Source: Geico

Special Reports /

Geico Lodges $1.8M Lawsuit for Suspected No-Fault Fraud in NY

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