On February 5, plaintiffs Orthosupply, LLC—a New Jersey corporation—and its owner Daniel Ross have filed a lawsuit against Government Employees Insurance Company (GEICO) and its subsidiaries, accusing them of malicious prosecution and fraudulent business practices.
The plaintiffs allege that GEICO and its associated companies engaged in a fraudulent scheme to deny legitimate insurance claims for durable medical equipment provided to individuals injured in motor vehicle accidents. According to the complaint, GEICO's actions contravene New York's "No-fault" Insurance system by wrongfully denying properly submitted bills and coercing providers into accepting payments below the state's Workers’ Compensation Fee Schedule. The plaintiffs claim that this scheme aims to extort money from them and put their business at risk.
Orthosupply seeks a court declaration obligating GEICO to pay over $1.7 million in pending insurance claims that remain unpaid due to alleged fraudulent denials. The lawsuit outlines multiple accusations against GEICO, including tortious interference with business relations by steering medical providers away from Orthosupply through intimidation tactics. Additionally, it accuses GEICO of engaging in racketeering activities under the Racketeer Influenced and Corrupt Organizations Act (RICO), claiming that the defendants used mail fraud as part of their scheme.
The plaintiffs are seeking various forms of relief from the court: a declaratory judgment affirming their right to payment for all pending bills submitted under Orthosupply’s name; treble damages under RICO provisions; compensatory and punitive damages for common law fraud; damages for malicious prosecution; and compensation for tortious interference with business relations. They also demand a jury trial to address these grievances.
Representing Orthosupply and Daniel Ross is attorney Joseph Sparacio of the Law Office of Marvin Ben-Aron based in Staten Island, New York. The case was filed in the United States District Court for the Eastern District of New York under Case ID 1:25-cv-00651.