Liberty Mutual General Insurance Company and other affiliates have filed a lawsuit against Argyle Pharmacy Inc., Mehtab Bibi, and Timur Yuzefpolsky, alleging a sophisticated scheme to defraud them through fraudulent insurance claims.
The plaintiffs accuse the defendants of orchestrating a fraudulent operation that involved submitting false claims for pain-relief products under New York's No-Fault laws. These laws provide coverage for medical expenses related to automobile accidents. The complaint alleges that the defendants billed Liberty Mutual for medically unnecessary drugs like Lidocaine 5% Ointment and Diclofenac Sodium 3% Gel. According to the plaintiffs, these products were part of a pre-determined treatment protocol that ignored actual medical needs.
Liberty Mutual claims that the defendants enriched themselves by exploiting New York's No-Fault system, which allows pharmacies to seek payment directly from insurers without involving claimants in the billing process. This setup allegedly enabled Argyle Pharmacy to submit inflated claims while keeping patients unaware of the costs involved. The plaintiffs argue that Argyle was not eligible to collect No-Fault payments due to non-compliance with state licensing laws and prohibitions against billing for unnecessary drugs.
The lawsuit seeks actual damages exceeding $748,350.27 for wrongful payments made during this scheme. Additionally, Liberty Mutual requests a court declaration stating they are not obligated to make further payments on any related No-Fault claims submitted by the defendants.
Liberty Mutual is represented by the attorneys of King, Tilden, McEttrick & Brink, P.C. The case was filed in the United States District Court for the Eastern District of New York under Case ID 1:25-cv-01649.