Insurance company Government Employees Insurance Company (GEICO) has filed a lawsuit against a New York-based pharmacy and its associates for allegedly orchestrating an elaborate insurance fraud scheme.
In the lawsuit, GEICO accuses Skillman Chemists Corp., operating as Sunnyside Pharmacy, along with Vyacheslav “Steve” Khaimov and several unidentified individuals, of exploiting New York's "No-Fault" insurance system by submitting over $3 million in fraudulent claims. These claims were for medically unnecessary pharmaceuticals and medical equipment purportedly dispensed to automobile accident victims across various clinics in the New York Metropolitan area. GEICO alleges that this scheme was meticulously crafted to maximize profits without regard for patient care or medical necessity. The complaint details how Skillman Chemists Corp., under Khaimov's ownership, systematically billed for high-margin prescription drugs and equipment using sham prescriptions. The lawsuit claims that these actions were part of a broader conspiracy involving collusion with healthcare providers and unlicensed individuals who directed prescriptions to Skillman in exchange for kickbacks.
The legal filing outlines specific instances of alleged fraud, including the submission of nearly $1.8 million in claims for topical pain products like Lidocaine Ointment and Diclofenac Gel. GEICO contends that these products were chosen not for their efficacy but because they could be acquired cheaply and billed at exorbitant rates under New York’s reimbursement schedules. Furthermore, the defendants are accused of billing approximately $500,000 for durable medical equipment using misrepresented codes to inflate charges.
GEICO seeks to recover over $1.4 million already paid out due to these fraudulent activities and requests a declaration from the court stating it is not obligated to pay an additional $867,900 in pending claims submitted by Skillman Chemists Corp. The plaintiffs argue that these claims are invalid as they stem from illegal practices such as predetermined fraudulent protocols and unlawful financial incentives.
The plaintiff is represented by attorneys Barry I. Levy, Michael A. Sirignano, and Joanna Rosenblatt of Rivkin Radler LLP. The case was filed in the United States District Court for the Eastern District of New York under Case ID 1:25-cv-02026 and is overseen by Judge Pamela K. Chen.