Liberty Mutual has filed a lawsuit against multiple New York physical therapy practices and individuals, alleging a scheme to defraud the insurer of more than $863,000.
The defendants named in the complaint include Igor Farberov, GIF Consulting Corp, BV Physical Therapy, P.C., and several other entities and individuals associated with physical therapy services. The complaint claims that the defendants orchestrated a fraudulent scheme involving the submission of false no-fault insurance claims for medically unnecessary services. These services included a computerized range of motion and muscle strength testing, functional capacity tests, and activity limitation measurement tests—collectively referred to as “Fraudulent Services.” The plaintiffs allege that these services were purportedly provided to individuals involved in automobile accidents who were covered under New York’s no-fault insurance policies issued by the company.
According to the complaint, the alleged fraudulent activities occurred at various medical clinics throughout New York City. The plaintiffs claim that these clinics billed Liberty Mutual for treatments that were either not performed or not medically necessary. The defendants allegedly used tax identification numbers from different healthcare practices as fronts to conceal their activities. The complaint also alleges that several licensed physical therapists are acting as nominal owners to conceal the true ownership and control of these practices from unlicensed individuals.
The plaintiffs are seeking recovery of more than $863,000 allegedly obtained through the scheme and a declaration from the court that they are not obligated to pay over $1 million in pending insurance claims submitted by or on behalf of the defendants. They contend that these claims are invalid because they were submitted by unlawfully incorporated entities controlled by individuals who are not licensed healthcare professionals.
The complaint further alleges that unlicensed individuals secretly owned and operated professional corporations in violation of New York law, recruiting licensed physical therapists to use their names and credentials to facilitate billing practices in violation of state regulations.
The plaintiffs demand a jury trial and seek compensatory damages exceeding $863,000, along with declaratory relief preventing future payments on claims alleged to be fraudulent.
The plaintiff is represented by attorneys Barry I. Levy and Frank P. Tiscione 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-05428.