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GEICO alleges nine medical supply firms ran a $3.3M No-Fault scheme
GEICO says the alleged operation billed in sequence across May 2024 to February 2025 to limit any single supplier's exposure under New York's No-Fault system.
GEICO has filed a complaint alleging nine New York durable medical equipment firms operated as one fraudulent scheme, billing it $3.3 million for equipment it says patients never needed.
According to Insurance Business, the lawsuit, filed July 21, 2026, in the US District Court for the Eastern District of New York, names the nine DME companies and eight individuals described as their paper owners, and argues the businesses were not genuinely separate.
GEICO’s theory centers on billing patterns tied to a “quick hit” strategy, including the complaint’s allegation that the companies billed in sequence from May 2024 through February 2025 to limit the amount submitted by any one entity and to mask the common scheme.
The insurer also points to alleged common links, including near-identical prescriptions and billing codes, bills routed through a single billing company, Ace Medical Billing Corp., and GEICO checks allegedly converted to cash at check-cashing facilities in New Jersey, while alleging the defendants refused to appear when GEICO sought to question owners under oath.