GEICO alleges $1.2 million No-Fault DME fraud scheme in RICO suit

GEICO says two medical-equipment suppliers billed it more than $1.2 million in fraudulent No-Fault claims for equipment patients never needed.

The auto insurer filed a federal complaint on September 1, 2026, in the US District Court for the Eastern District of New York. It targets two durable medical equipment (DME) companies and the three men who allegedly own and run them. The complaint brings 12 claims, six of them under the Racketeer Influenced and Corrupt Organizations Act, better known as RICO.

According to the complaint, the two companies were not the independent businesses they appeared to be. GEICO alleges they were two arms of a single scheme, set up to bill GEICO and other New York auto insurers for equipment that was either never needed, never properly supplied, or both. The filing says the scheme has run since 2019…

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