GEICO sues New York medical suppliers over alleged $2 million insurance fraud


Judge Pamela K. Chen of the U.S. District Court for the Eastern District of New York | Administrative Office of the United States Courts | Wikipedia Commons

Insurance company GEICO has filed a lawsuit against several medical supply companies and individuals to recover more than $2 million, alleging was obtained through fraudulent insurance claims.

The lawsuit names Carepoint Medical Supply Inc., Boris Fleyshman, A & G Life Care Inc., Alina Berkman, Health and Safety Inc., Vera Firayner, Medcomfort Supply Inc., Anna Shanditseva, Rosa Lynn Supply Inc., Rocio Cruz de Robles, Vitallink Medical Supply Inc., Tatyana Kruzhkova, and unidentified John Doe defendants. GEICO alleges that these entities submitted thousands of claims for medically unnecessary durable medical equipment (DME) and orthotic devices, including lumbar sacral orthoses and cold compression therapy units. The claims were allegedly made through a network of companies known as the DME Providers.

According to the complaint, although the companies were presented as being owned by individuals such as Boris Fleyshman and Alina Berkman, they were in fact controlled by unidentified parties referred to as John Doe defendants. The complaint alleges that the defendants used illegal kickbacks to obtain prescriptions from healthcare providers working at no-fault clinics in New York City. The scheme allegedly involved shifting billing between different DME Providers to avoid detection while submitting nearly identical misrepresentations about the equipment provided.

GEICO seeks recovery of the $2 million already paid out and a declaration that it is not obligated to pay more than $1.3 million in pending claims. The complaint further alleges that each DME Provider was part of a broader scheme involving undisclosed ownership and financial benefit, and that the defendants used fictitious businesses, such as Top Notch Wholesale Inc., for money laundering purposes.

The complaint also states that predetermined protocols were used at clinics where patients received identical prescriptions regardless of medical needs or accident circumstances, indicating alleged collusion between clinic operators and DME Providers.

The plaintiff is represented by attorneys Barry I. Levy, Michael Vanunu, and Joanna Rosenblatt of Rivkin Radler LLP. The case was filed in the United States District Court for the Eastern District of New York and is presided over by judges of that court.

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