A major insurance fraud lawsuit has been filed, aiming to recover over $631,000 allegedly obtained through fraudulent claims. The plaintiffs, Government Employees Insurance Company (GEICO) and its subsidiaries, have brought the case against Altermedic Products Inc., Gezuntmed Products Corp., Mikell Dashevsky, Volodymyr Dovbush, and unnamed defendants in the United States District Court for the Eastern District of New York on January 16, 2026.
The complaint accuses the defendants of orchestrating a scheme to defraud GEICO by submitting thousands of false no-fault insurance claims for durable medical equipment (DME) that was medically unnecessary or non-reimbursable. The fraudulent activities reportedly involved osteogenesis bone stimulation devices and other orthotic devices billed through Altermedic and Gezuntmed. According to GEICO, these companies were used as billing arms in a "quick hit" strategy designed to exploit automobile accident victims' insurance policies. The lawsuit alleges that while Mikell Dashevsky and Volodymyr Dovbush are listed as owners on paper, the operations were controlled by unidentified individuals who profited from this fraudulent activity.
The complaint outlines how the defendants allegedly colluded with various no-fault medical clinics in New York City. They obtained prescriptions through kickbacks and financial incentives given to healthcare providers working at these clinics. These prescriptions were then used to submit inflated bills to GEICO. For instance, the defendants billed more than $1.6 million but managed to collect over $631,000 before being detected. The fraudulent scheme is said to have begun around September 2024 and continued until at least February 2025.
GEICO is seeking not only the recovery of funds already paid out but also a declaration that it is not obligated to pay over $1 million in pending claims related to this scheme. They argue that these claims were part of a fraudulent operation involving misrepresentation of services provided and violation of local licensing requirements necessary for collecting no-fault benefits.
The legal team representing GEICO includes Barry I. Levy, Michael Vanunu, Philip P. Nash, and Wallis Levy Granat from Rivkin Radler LLP based in Uniondale, New York. This case has been assigned Case ID 1:26-cv-00278 in front of judges at the Eastern District Court of New York.
Source: 126cv00278_GEICO_v_Altermedic_Products_Inc_Complaint_Eastern_District_New_York.pdf