GEICO Hunts for Fraud No-Claims Cases in NY


85137183The Government Employee Insurance Company, otherwise known as GEICO, has filed a court case against no-claims suspects which operated in Kew Garden in New York last June 11. In the claim, suspects ask for radiological services payment which they forwarded to a medical professional corporation that has been charged to be clandestinely held and managed by nonmedical people.

The complaint reported on the United States District Court for the Eastern District of New York was a $1.8 million worth of compensation and treble damages as set upon by the Federal RICO statue and the communal law of New York. They have named about 10 suspects in the said crime wherein there are two medical professional corporations, a non-physician along with the companies he controlled to hold the medical professional corporation as well as its revenue, two other physicians and two lawyers with a law firm based on Long Island.

GEICO’s Special Investigation’ Unit have recognized that the radiological services that was haphazard and cyclical in pattern that they sensed that it was a no-claim scheme system and was indeed a fraud. They also saw that the duplicity of controversies in the company were all forged records and documents.

“GEICO has a zero tolerance when it comes to insurance fraud,” says regional vice president of GEICO in Woodbury, New York, Seth Ingall. He also said that GEICO would take high priority and decisive action on whomever individual, whether he was the president of the United States or a common American citizen, which would seek    to claim payments made and to discourage any other deceitful activities. He then put in that “This litigation is a representation of further lawsuits which GEICO plans to file to get back fraudulently induced money and to stop fraudulent activities.” This warning and notice set out a challenge to all American frauds.

GEICO has already adopted a new, effective and comprehensive anti-fraud systems and programs to tackle down no-claims abusers in New York, as what was reported by Nancy Pierce, GEICO’s vice president. They have also devised a new way of detecting fraud in their customers and to protect other policyholders who do not engage in fraud.

At the moment, GEICO has been dynamically participating with the New York State Insurance Department’s Fraud Bureau, the National Insurance Crime Bureau or the NICB and also with other law enforcing agencies of the government as well as non government organizations to completely eradicate fraud cases in New York. The said state, in fact, held the highest cases of no-claims in the country with about 111 percent based on the Insurance Information Institute.