NEW YORK -- Insurance company Geico said Monday it filed a $1.8 million lawsuit alleging fraud in a scheme involving the submission of thousands of no-fault claims to the company.
The company said the medical claims, seeking payment for radiology services, were submitted through medical professional corporations, operating from a single imaging center in New York City. Gieco's lawsuit alleges the imaging center was secretly owned and controlled by non-physicians.
The lawsuit, filed in the United States District Court for the Eastern District of New York, names 10 defendants including two physicians, two medical professional corporations, a non-physician, and two attorneys.
Geico seeks to recover more than $1.8 million from the defendants in damages under the Federal Racketeer Influenced and Corrupt Organizations Act, or RICO, along with New York common law, as well as punitive damages.
"Geico has a zero tolerance policy when it comes to insurance fraud," said Seth Ingall, regional vice president of Geico's Woodbury, N.Y., office, in a statement.
Geico said it is actively working with the New York State Insurance Department's Fraud Bureau, the National Insurance Crime Bureau, and law enforcement agencies in a move to curb no-fault insurance fraud and to increase public awareness of the problem.
Geico is part of Berkshire Hathaway Inc.