GEICO, a major insurance provider, has launched a legal battle against several New York-based companies and individuals over an alleged fraudulent scheme that has cost the insurer over $1 million. The complaint was filed by GEICO in the United States District Court for the Eastern District of New York on December 16, 2025, targeting Right On Time Supply, Inc., Rush to You Supply Corp., CISM Med Supply, Inc., and other associated defendants.
The lawsuit accuses these entities and individuals of orchestrating a complex fraud involving the submission of thousands of false no-fault insurance claims. According to GEICO's complaint, the defendants have been billing for medically unnecessary durable medical equipment (DME) such as Osteogenesis Stimulators, Pneumatic Compression Devices, and Air Mattresses. These charges were allegedly inflated through fraudulent misrepresentations about the nature and necessity of the equipment provided to insured individuals involved in automobile accidents.
GEICO alleges that this scheme was facilitated by collusive arrangements with healthcare providers who issued prescriptions for unnecessary DME in exchange for kickbacks. The company claims that these prescriptions were not based on genuine patient care needs but were part of a predetermined fraudulent protocol designed to exploit insurance benefits. "Defendants billed GEICO for Fraudulent Equipment pursuant to a fraudulent scheme," states the complaint, highlighting how this operation has been ongoing since July 2024.
The plaintiffs are seeking to recover more than $1 million already paid out under false pretenses and are also asking for a declaration from the court stating they are not obligated to pay over $670,000 in pending claims submitted by or on behalf of these DME providers. GEICO is invoking laws under 18 U.S.C. §§ 1961 et seq., known as the Racketeer Influenced and Corrupt Organizations (RICO) Act, among other state laws governing insurance fraud.
The case underscores significant allegations against key figures like Kateryna Serdiuk, Brandon Lulov, Stanislav Savitskiy, and Ilya Kopach N.P., who are accused of being primary drivers behind this elaborate scam. The lawsuit details how these individuals used their positions within various corporations to submit fraudulent claims while secretly operating under unlicensed conditions contrary to local regulations.
GEICO's legal team comprises Barry I. Levy Esq., Michael Vanunu Esq., Philip Nash Esq., and Alexandra Cusano Esq. from Rivkin Radler LLP. The case is being overseen by judges at the Eastern District Court of New York under Case ID 1:25-cv-06923.
Source: 125cv06923_GEICO_v_Right_on_Time_Supply_Inc_Complaint_Eastern_District_New_York.pdf