State Farm Takes on Alleged $30 Million Fraud Scheme
A $30 million fraud case. Over 90 clinics. Thousands of patients. State Farm is making waves with its latest lawsuit, targeting Atlantic Medical & Diagnostic, P.C., and its owners, Dr. Jonathan Landow and Dr. Viviane Etienne. The allegations? A sweeping no-fault insurance fraud scheme that’s shaking up the industry.
The Allegations: Fraud on Autopilot
State Farm’s lawsuit, filed on February 25, 2026, in the U.S. District Court for the Eastern District of New York, paints a damning picture. Atlantic Medical allegedly operated over 90 clinics across New York City, described as “No Fault Clinic Mills.” Since June 2022, these clinics reportedly examined more than 5,500 State Farm insureds. The catch? State Farm claims the treatments were medically unnecessary.
Think about it. Trigger point injections, nerve blocks, orthotics, and even electrodiagnostic testing—allegedly prescribed to nearly every patient, regardless of their actual symptoms. A one-size-fits-all treatment plan. Convenient for billing. Not so much for patient care.
The No-Fault System: A Loophole?
Under New York’s no-fault insurance system, auto insurers must cover up to $50,000 per insured for necessary medical expenses after an accident. State Farm alleges Atlantic exploited this system, funneling patients through sham exams and billing for services that were neither needed nor properly documented.
But it doesn’t stop there. The lawsuit also accuses Atlantic of illegal kickback arrangements. Payments disguised as “rent” for office space or administrative fees allegedly fluctuated based on patient volume. A clear violation, according to State Farm.
Billing Irregularities: The Numbers Don’t Add Up
State Farm’s claims go deeper. Atlantic allegedly billed for multiple units of ultrasonic guidance—when guidelines allow only one per visit. Medications costing a dollar were billed at hundreds. Services performed by nurse practitioners and physician assistants? Billed at full physician rates, despite inadequate supervision under New York law…