News Summary
GEICO has launched a lawsuit against Live Again Medical Supply and its owner, Richard Anderson, accusing them of a large-scale fraud scheme targeting no-fault insurance claims in New York. The lawsuit alleges that the defendants submitted false claims for medical equipment valued over $2.2 million since 2017, involving items that were either substandard or not provided at all. GEICO seeks to recover over $790,000 in paid fraudulent claims and contest nearly $680,000 in pending claims, highlighting significant concerns about inflated charges and threats to the integrity of the insurance system.
New York – GEICO and its affiliated companies have filed a lawsuit against Live Again Medical Supply Inc. and its owner Richard Anderson, alleging a significant fraud scheme targeting no-fault insurance claims in New York. The lawsuit was initiated on September 19, 2025, in the United States District Court for the Eastern District of New York, alleging that the defendants orchestrated fraudulent activities amounting to over $2.2 million since 2017.
The complaint indicates that Live Again Medical Supply and Anderson submitted false claims for durable medical equipment and orthotic devices, including cervical collars, lumbar supports, and positioning cushions, which were billed in relation to car accident insurance claims. GEICO claims that these items were either of low quality or not provided at all, contrary to what was represented in the claims submitted.
According to GEICO, the fraud involved collusion with operators of no-fault medical clinics, who allegedly accepted kickbacks in exchange for obtaining prescriptions from healthcare providers. The lawsuit states that fraudulent prescriptions were submitted for billing to GEICO, which were filled with numerous misrepresentations regarding the items provided to insured individuals.
The complaint reveals that decisions concerning the necessary medical equipment were often made by non-licensed individuals, raising questions about the compliance of the claims with medical and legal standards. GEICO also highlights that several billed items were not medically necessary, contributing to inflated charges for services that compromised the integrity of the no-fault insurance system.
GEICO’s lawsuit references New York’s No-Fault insurance laws, which mandate auto insurers to cover up to $50,000 per insured individual for necessary medical expenses incurred following car accidents. The insurer alleges that the defendants manipulated Healthcare Common Procedure Coding System (HCPCS) Codes to inflate reimbursement rates, as well as exploited regulatory loopholes to facilitate their fraudulent scheme.
In terms of financial implications, GEICO is seeking to recover over $790,000 for fraudulent claims that have already been paid since 2020. Additionally, the insurer is asking the court to determine that it is not legally obligated to pay approximately $680,000 in pending claims attributed to the defendants.
This lawsuit not only includes allegations of common law fraud and unjust enrichment but also claims under the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, signaling the gravity of the alleged fraud scheme. The complaint outlines broader threats posed by such fraudulent activities to the insurance industry, asserting that inflated charges exhaust no-fault benefits and impede legitimate access to necessary medical services for the insured population.
GEICO’s investigation notes that the inflated fees for durable medical equipment not only undermine the no-fault insurance system’s integrity but also result in increased costs for both insurers and policyholders. The allegations against Live Again Medical Supply and its affiliates raise significant concerns about the potential for more widespread abuse within the system, which may ultimately burden legitimate claims.
As this legal battle unfolds, it remains a crucial case that highlights the ongoing struggle against fraud within the insurance sector. Lawmakers and law enforcement agencies are likely to be paying close attention to the proceedings, which could shape future policies aimed at protecting consumers and ensuring the appropriate use of no-fault insurance benefits.
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Additional Resources
- Insurance Business: GEICO Pursues $2.2 Million Fraud Claims
- Google Search: Insurance Fraud
- NBC New York: NYC Staged Crash Insurance Fraud
- Wikipedia: Insurance Fraud
- CBS News: Staged Car Crash Insurance Scheme Arrests
- Encyclopedia Britannica: Insurance
- ABC7: Detecting Auto Insurance Fraud
- Google Search: Insurance Fraud Staged Accidents
- QNS: Men Charged in Staged Car Crashes Insurance Scam
- New York Times: NYC Staged Car Accidents Arrests
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.
