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GEICO sues New York medical-equipment supplier over $3.7 million fraud
The insurer alleges the supplier’s filings helped generate more than $2.1 million in payouts, while another $1.3 million remains in pending bills.
GEICO has filed a lawsuit against a New York medical-equipment supplier, alleging it billed the insurer more than $3.7 million for braces, cushions, and stimulators that patients supposedly never needed.
The insurer says it lodged the case on September 8, 2026 in the U.S. District Court for the Eastern District of New York, naming APEX Health Products Inc., its owner, and up to 10 unnamed “John Doe” defendants. GEICO’s complaint centers on New York’s No-Fault system, which is designed to speed coverage for medical care after car crashes.
GEICO alleges the alleged scheme, which it says began no later than September 2024 and is still operating, relied on “medically unnecessary, illusory, and otherwise non-reimbursable” equipment. The filing describes the alleged “Fraudulent Equipment” as including joint-stimulation devices, heat pads with pumps, percussors, wheelchair back cushions, and lumbar braces.
According to the complaint, GEICO paid out more than $2.1 million and is now contesting another $1.3 million in pending bills, out of more than $3.7 million billed to GEICO alone. It also alleges the supplier never operated as a legitimate medical vendor, instead tying prescription routing to No-Fault clinics through kickbacks, including prescriptions with “photocopied or otherwise duplicated” signatures.