GEICO sues Brooklyn medical suppliers for alleged $835K insurance fraud

BROOKLYN — INSURANCE GIANT GEICO has filed a federal lawsuit accusing two Brooklyn-based companies, Droz Medical Supply Inc. and GB Medical Supply Inc., of orchestrating an $835,000 insurance fraud scheme, with an additional $1.2 million in disputed claims still pending, according to Insurance Business Magazine. Filed Oct. 3 in the Eastern District of New York, the suit alleges that company owners Daniel M. Drozdov and Gennadiy Bortnikov billed for unnecessary or nonexistent medical equipment under New York's No-Fault insurance system. GEICO also claims both firms lacked required city licenses and used fraudulent billing codes to inflate reimbursements.

The case includes RICO and common-law fraud charges, though no liability has yet been determined.

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