A $2 million fraud lawsuit, filed by GEICO in Brooklyn, is putting a spotlight on how insurers handle suspicious no-fault claims in New York.
On August 7, 2025, GEICO and its affiliates took six New York medical supply companies and their alleged owners to federal court, claiming they orchestrated a sweeping scheme to drain millions from the insurer through fraudulent no-fault insurance claims. The case, filed in the Eastern District of New York, names Medcomfort Supply Inc., A & G Life Care Inc., Health and Safety Inc., Rosa Lynn Supply Inc., Carepoint Medical Supply Inc., Vitallink Medical Supply Inc., and several individuals as defendants.
According to GEICO’s complaint, the defendants submitted thousands of claims for durable medical equipment – think custom back braces, shoulder supports, cold compression therapy units, and infrared heating pads – allegedly prescribed to people involved in car accidents. GEICO says much of this equipment was either medically unnecessary, never actually provided, or misrepresented on the paperwork. The insurer claims the companies used nearly identical billing language and codes, and that the same types of equipment kept appearing across different claims…