GEICO Sues Medical Providers Over $5.7M In False Claims

August 24, 2015

According to an August 18, 2015, Law360 article, GEICO General Insurance Co.  has filed suit against several alleged fraudulent medical companies and their owners for over $5.74 million in paid and pending claims for various medical and physical therapy services provided to auto accident victims in New York.

GEICO is claiming that the individuals running the fraudulent scheme bought medical licenses from doctors and used them to make several medical providers appear legitimate. GEICO is asking the court to recover $2.74 million in no-fault insurance claims that the company has already paid into the alleged scheme and is seeking a judgement that the company does not have to pay the $3 million it still owes.

GEICO is arguing that it should not be required to pay the $3 million it still owes because the providers were fraudulently incorporated and illegally owned by nonmedical professionals.  The services provided in scheme were done by unlicensed independent contractors, and the billing codes for the services provided were misrepresented and exaggerated to inflate the submitted charges.

The suit names the following companies:

  • LLJ Therapeutic Services PT PC
  • Dunamis Rehab PT PC
  • Synoptic Physical Therapy PC
  • Rehab Choice Corp.
  • NR Motion PT PC
  • Rehabxpress PT PC
  • Rom Medical PC

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