A lawsuit has been filed alleging a large-scale, fraudulent scheme involving staged construction accidents and inflated medical claims. On October 8, 2024, Ionian Re, LLC filed a complaint in the United States District Court for the Eastern District of New York against Gorayeb & Associates, P.C., along with several medical professionals and organizations.
Ionian Re, LLC accuses the defendants of orchestrating a fraud scheme under the Racketeer Influenced and Corrupt Organizations Act (RICO). The alleged scheme involved recruiting construction workers to fake accidents and claim exaggerated injuries to file fraudulent workers' compensation claims and personal injury lawsuits. According to the complaint, these activities have been ongoing since at least 2018. The legal firm Gorayeb & Associates is accused of directing this operation by recruiting non-English speaking workers through OSHA training sessions. These workers were allegedly promised financial benefits if they claimed workplace injuries, with additional incentives for undergoing surgeries or rehabilitation.
The complaint details how the recruited workers were directed to specific medical providers who would provide unnecessary treatments and inflate medical records to boost settlement values in lawsuits. The defendants are said to have profited from these inflated settlements through reimbursement for unwarranted medical services. Ionian Re alleges that these actions led to significantly increased costs in insurance claims settlements and adjustments.
Ionian Re seeks actual and consequential damages from the defendants, along with treble damages under RICO statutes. They also request injunctive relief to prevent further fraudulent activities by the defendants. Additionally, Ionian Re demands compensation for investigative costs incurred due to the alleged fraud.
The case is being handled by attorneys from The Willis Law Group, LLC. Case I.D.1:24-cv-07098.