Allegations of fraudulent billing practices involving medical equipment have led a group of insurance companies to seek legal action to recover significant sums and halt further payments. On June 2, 2026, Government Employees Insurance Company, GEICO Indemnity Company, GEICO General Insurance Company, and GEICO Casualty Company filed a complaint in the United States District Court for the Eastern District of New York against Oceansupply Inc., Olena Nesterova, Vital Edge Supplies Inc., Mykhailo Matskevych, and unnamed John Doe defendants.
According to the complaint prepared by attorneys Barry I. Levy, Michael A. Sirignano, Joanna Rosenblatt, and Rawson Jahan of Rivkin Radler LLP, the plaintiffs allege that the defendants orchestrated a scheme to submit numerous fraudulent charges under New York's No-Fault insurance system. The charges relate to durable medical equipment (DME) such as Pulsed Electromagnetic Therapy Devices (PEMF Mattresses), Laser Therapy Devices, Sustained Acoustic Medicine Units (SAM Units), Cold Compression Therapy Systems (CCTSs), Electrical Osteogenesis Stimulator Devices, Pneumatic Compression Devices (DVT Devices), and other orthotics. Plaintiffs claim these devices were medically unnecessary or not provided at all.
The complaint outlines that Oceansupply Inc. and Vital Edge Supplies Inc.—both New York corporations—were used as vehicles for submitting inflated claims on behalf of individuals who allegedly suffered injuries in automobile accidents covered by GEICO policies. The two companies are purportedly owned by Olena Nesterova and Mykhailo Matskevych but are alleged to be controlled by unidentified 'Secret Owners' and other John Doe defendants who managed operations behind the scenes.
Plaintiffs state that over a period beginning in January 2025, more than $2 million in bills were submitted for reimbursement from GEICO for this so-called Fraudulent Equipment. Individual device charges included $4,766.24 per PEMF Device and $3,150 per Laser Therapy Device among others. The suit alleges that many prescriptions were generated through collusive referral arrangements with healthcare providers associated with clinics treating primarily No-Fault patients. These referrals often relied on template forms with stamped or photocopied signatures rather than legitimate individualized prescriptions.
To support their billing claims, defendants allegedly submitted false wholesale invoices from Top Notch Wholesale Inc., which plaintiffs describe as a shell company used to generate fabricated documentation justifying inflated charges and disguising the laundering of insurance proceeds.
The complaint details how both DME Providers operated only briefly—Oceansupply from January 8 to April 25, 2025; Vital Edge Supplies from January 27 to June 9, 2025—but continue seeking collection on pending bills submitted during those periods. Plaintiffs assert that neither company maintained genuine retail locations nor engaged in legitimate marketing or patient outreach typical of real DME suppliers.
According to the filing: "The DME Defendants do not now have — and never had — any right to be compensated for the Fraudulent Equipment billed to GEICO through the DME Providers." Plaintiffs argue that under New York law—including regulations governing No-Fault Benefits—reimbursement is only available for medically necessary equipment prescribed by licensed practitioners without unlawful financial arrangements or kickbacks.
GEICO seeks recovery of approximately $210,000 already paid out since 2025 due to what it describes as wrongful conduct by defendants. Additionally, it requests a declaration from the court stating it is not legally obligated to pay about $1.5 million in pending claims related to these transactions.
The legal arguments presented include alleged violations of federal statutes such as the Racketeer Influenced and Corrupt Organizations Act (RICO) as well as state laws prohibiting fraudulent insurance acts and unlawful compensation arrangements between providers and prescribers.
In support of its case, GEICO provides detailed examples showing patterns where multiple prescriptions were issued simultaneously for expensive devices using boilerplate language rather than individualized patient assessments—a practice plaintiffs claim demonstrates predetermined protocols aimed at maximizing profit rather than providing appropriate care.
The case was filed under Case ID 1:26-cv-03313 in the Eastern District of New York. Attorneys representing the plaintiffs are Barry I. Levy, Michael A. Sirignano, Joanna Rosenblatt, and Rawson Jahan from Rivkin Radler LLP.
Source: 126cv03313_GEICO_v_Oceansupply_Inc_Complaint_Eastern_District_New_York.pdf