State Farm has filed suit against a wealthy Florida chiropractorbehind the medical and legal referral service, 1-800-ASK-GARY,meant for auto accident victims.

The insurer alleges Gary Kompothecras, known as “Dr. Gary,” isinvolved in a “massive fraud scheme,” which has led to State Farmpaying Kompothecras-owned Physicians Group more than $19 millionsince 2005.

According to the federal suit filed in the Middle District ofFlorida, Kompothecras' ASK-GARY referral service has never referredany auto accident victim to any other healthcare provider otherthan Physicians Group.

Additionally, Kompothecras' referral service accepts money frompersonal injury attorneys in return to obtain client referrals,alleges State Farm. Some attorneys then send their clients toPhysicians Group for treatment, adds the insurer in thelawsuit.

“The driving force behind the Defendants' scheme is to exhausttheir unsuspecting patients' limited no-fault benefits, withoutregard to whether the patients may have health insurance that mightotherwise cover some or all of Physicians Group's charges, therebypreserving their no-fault benefits for other medical services thatthe patients may truly need,” State Farm alleges.

The suit also name two men, David Balot and William Sigelakis,owners of “shell companies” set up to “facilitate the illusion thatASK-GARY is an independent and legitimate” operation. Sigelakis,Kompothecras' cousin, is owner of WS Marketing, formed in 2007. WSallegedly owns and operates ASK-GARY.

The Physicians Group calls the lawsuit “frivolous andmalicious.” In a statement, the group says the litigation is a“desperate act by State Farm,” and the insurer will “be exposed toclaims for malicious prosecution by pursuing this absurdaction.”

Physicians Group says State Farm owes more than $9 million onmore than 1000 claims. The healthcare group also says ASK-GARY doesnot refer all accident victims to it, and attorneys are notrequired or advised to send clients to the Physicians Group.

State Farm says it has a sworn affidavit from an attorney whoreceived referrals from ASK-GARY.

Kompothecras and his businesses are alleged to have violatedseveral state laws and, therefore, treatment and services providedby ASK-GARY and the Physicians Group was not lawful, says StateFarm.

The insurer is seeking a declaratory judgment to ensure it isnot on the hook to pay bills submitted since 2005, whenKompothecras registered the ASK-GARY trademark.