GEICO is taking aggressive action against medical firms in Florida and New York, accusing them of leading multimillion-dollar, no-fault auto insurance fraud schemes.
In a lawsuit filed this month in federal court in Tampa, GEICO charged that AJ Therapy Center and its principals had submitted and received more than $4.6 million in fraudulent personal injury protection insurance claims for unnecessary medical treatments.
In multiple examples over the last few years, the clinic misrepresented the extent of injuries from auto accidents, despite police reports showing little damage to vehicles and no serious injuries, according to the complaint that seeks compensatory and punitive damages.
In federal court in Brooklyn, GEICO filed a similar lawsuit against Droz Medical Supply, GB Medical Supply and the firms’ leadership. The complaint alleges that the companies collected more than $835,000 in insurance payments for medically unnecessary durable medical equipment and prescription medication.
“The fraudulent equipment is alleged have been provided to individuals who claimed to have been involved in automobile accidents in New York and eligible for coverage under no-fault insurance policies issued by GEICO,” the complaint reads.
The defendants “intentionally made the above described false and fraudulent statements and concealed material facts in a calculated effort to induce GEICO to pay charges submitted through Droz Supply that were not compensable under New York No-Fault insurance laws,” the suit notes.
The New York suit asks for compensatory and punitive damages.
The named defendants in both lawsuits have not yet filed answers to the complaints.
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