08/08/2026
GEICO alleges four New York medical-supply firms ran a fast-moving billing operation, charging more than $2.9 million in four months for equipment it says was cheap, unneeded or never delivered.
In a complaint filed August 6, 2026 in the Eastern District of New York, the insurer alleges that four supply companies served as the billing arm of a "quick hit" scheme targeting New York's No-Fault system. According to the filing, the companies took turns dispensing durable medical equipment and orthotic devices - lumbar-sacral supports, osteogenesis bone stimulators, orthopedic pillows and massagers - to people said to have been injured in car accidents, then billed GEICO and other auto insurers.
GEICO alleges the firms were owned "on paper" by four individuals, each of whom, the filing says, "is not and has never been a licensed healthcare provider." The real control and profit, the complaint alleges, sat with an unidentified operator it calls the "Secret Owner," named as a John Doe defendant, for whom the paper owners are said to have worked.
Four rotating supply firms, vague scripts, inflated codes - GEICO says it paid before catching on