News Summary
GEICO has filed a lawsuit against Advanced Supplies of NY Corp. and its owner, alleging they defrauded the auto insurance industry out of over $620,000 through inflated no-fault insurance claims. The lawsuit, filed in the Eastern District of New York, claims hundreds of fraudulent bills for medical equipment were submitted, often misrepresenting services and kicking back to healthcare providers for prescriptions. This scheme reportedly began in April and included altering HCPCS codes for billing at higher rates, resulting in significant financial penalties for insurers and policyholders.
New York City – GEICO has taken legal action against Advanced Supplies of NY Corp., its owner Tatyana Linnik, and several unnamed co-conspirators, alleging that they defrauded the auto insurance industry out of more than $620,000. The lawsuit was filed on August 27 in the U.S. District Court for the Eastern District of New York.
The case revolves around accusations that the defendants orchestrated a fraudulent scheme involving inflated no-fault insurance claims. According to the complaint, hundreds of fraudulent bills were submitted for durable medical equipment and orthotic devices, which included items such as cervical collars, lumbar supports, and positioning cushions. GEICO alleges that these claims were reported as either medically unnecessary, never provided, or misrepresented to inflate reimbursement rates.
This fraudulent activity reportedly began no later than April 2023 and involved securing prescriptions from healthcare providers linked to no-fault clinics in the New York City area. GEICO claims that these prescriptions were obtained through kickbacks and collusive arrangements, further exacerbating the scale of the fraudulent scheme. Allegations include the use of photocopied or duplicated signatures from healthcare providers to secure the prescriptions.
The defendants reportedly submitted bills that misrepresented both the medical necessity of the equipment and the nature of the services provided. This manipulation reportedly involved altering the Healthcare Common Procedure Coding System (HCPCS) codes to bill at higher rates. GEICO contends that while the defendants billed the company for an excess of $950,000, they wrongfully collected over $620,000.
In its lawsuit, GEICO is seeking a court declaration stating it is not liable for an additional $200,000 in pending no-fault claims associated with Advanced Supplies. The lawsuit encompasses claims of declaratory judgment, violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act, common law fraud, and claims of unjust enrichment. GEICO argues that Advanced Supplies acted as the billing arm of the fraudulent scheme, operating under the direction of Linnik.
The unnamed defendants are described as individuals connected to medical offices and providers who referred patients and were implicated in profiting from the alleged fraudulent activities.
Under New York’s no-fault insurance system, insurers are mandated to offer up to $50,000 in personal injury protection benefits for medical expenses that have been prescribed by a licensed provider. GEICO alleges that the defendants systematically abused these provisions to benefit themselves, placing the financial burden on insurers and policyholders who adhere to legal insurance practices.
The unfolding legal battle comes amidst ongoing scrutiny of medical suppliers and their role in the no-fault insurance landscape. The case against Advanced Supplies is yet another example of challenges within the insurance industry concerning fraudulent claims and the need for measures to combat such unethical practices. As the lawsuit progresses, it may shed light on broader issues within the medical supply field and the implications for insurance providers and policyholders alike.
Deeper Dive: News & Info About This Topic
HERE Resources
Additional Resources
- GEICO News Release
- Wikipedia: No-fault Insurance
- Forbes: Fraud in Auto Insurance
- Encyclopedia Britannica: Insurance
- New York Times: Auto Insurance Fraud Case
- Google Search: Auto Insurance Fraud 2023
Author: STAFF HERE NEW YORK WRITER
NEW YORK STAFF WRITER The NEW YORK STAFF WRITER represents the experienced team at HERENewYork.com, your go-to source for actionable local news and information in New York, the five boroughs, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as New York Fashion Week, Macy's Thanksgiving Day Parade, and Tribeca Film Festival. Our coverage extends to key organizations like the Greater New York Chamber of Commerce and United Way of New York, plus leading businesses in finance and media that power the local economy such as JPMorgan Chase, Goldman Sachs, and Bloomberg. As part of the broader HERE network, including HEREBuffalo.com, we provide comprehensive, credible insights into New York's dynamic landscape.
