GEICO Accuses Queens Supplier of $1 Million RICO Fraud Scheme
September 24, 2025 | JacobiJournal.com — GEICO has filed a lawsuit in New York federal court accusing a Queens-based supplier and affiliated clinics of orchestrating a fraudulent billing scheme worth more than $1 million. The insurer alleges that the defendants engaged in a pattern of racketeering activity, violating the Racketeer Influenced and Corrupt Organizations Act (RICO). Fraudulent Billing at the Center of Allegations According to GEICO, the supplier and medical providers conspired to submit fraudulent claims for medical equipment that was either never delivered or grossly inflated in cost. The complaint alleges that kickbacks and sham arrangements were used to funnel illegal profits while disguising the transactions as legitimate medical expenses. Seeking Treble Damages By invoking RICO, GEICO is seeking treble damages — a remedy that could potentially triple the financial penalties against the defendants. The insurer says it is determined to stop fraudulent practices that raise premiums for honest policyholders and destabilize the healthcare claims process. Queens Case Adds to Broader Pattern This case adds to GEICO’s growing list of fraud lawsuits in New York, a jurisdiction the company has identified as a hotspot for organized insurance fraud. Recent enforcement actions underscore the insurer’s aggressive strategy to combat fraud at both the provider and supplier levels. Industry Watchers Signal Increased Scrutiny Legal experts say this case could set a precedent for how insurers leverage RICO statutes against medical networks suspected of collusion. If successful, it may embolden more insurers to use racketeering laws as a tool in fraud enforcement. For more information on insurance fraud enforcement, visit the New York State Department of Financial Services. FAQs: GEICO RICO Fraud Case What is GEICO alleging in this case? GEICO claims that a Queens supplier and medical clinics conspired to submit fraudulent medical equipment claims and pay kickbacks. How much money is involved in the alleged scheme? The insurer alleges the fraud exceeded $1 million. Why is GEICO using RICO laws? By filing under RICO, GEICO can pursue treble damages and highlight the alleged conduct as part of an organized fraud scheme. What impact could this case have on the insurance industry? If successful, it may encourage insurers to use RICO statutes more aggressively in fraud litigation, particularly in high-risk regions like New York. Stay ahead of the courtroom. Join thousands of readers who trust JacobiJournal.com for expert coverage on insurance fraud and integrity cases. Subscribe today. 🔎 Read More from JacobiJournal.com: