GEICO has been a victim of insurance fraud, and is fighting back…in the courts.
The Insurance Journal is reporting that GEICO has filed a lawsuit in the amount of $1.8 million alleging that a radiology center in Queens, NY orchestrated a no-fault auto insurance fraud scam that included thousands of suspicious claims for service.
GEICO did not identify the ten defendants by name, but they include the radiology center itself, the non-physician owner of the center, two different medical corporations, two doctors, two attorneys, and an entire law firm, based on Long Island.
The lawsuit is seeking the recovery of over $1.8 million in treble and compensatory damages. Punitive damages are being sought as well.
A representative of GEICO told the press that the insurer’s special investigations unit had identified the fraud based upon a “systemic pattern of irregular and repetitive billing” for services at the radiology center, as well as finding lawsuits against GEICO that were filed using forged documents to substantiate the claims being made.
Seth Ingall, regional vice president of GEICO’s office in Woodbury, NY, said, “GEICO has a zero tolerance policy when it comes to insurance fraud.” He continued, “GEICO will take decisive and immediate action against any individual seeking to recover payments made and to deter fraudulent activity.”
Ingall also said that this lawsuit is a “…a preview of further lawsuits that GEICO intends to file to recover fraudulently induced payments and to deter fraudulent activity.”





