GEICO has filed a federal lawsuit alleging that nine New York durable medical equipment companies operated as a single fraudulent entity to bill the insurer approximately $3.3 million for supplies that the insurer claims were medically unnecessary.
The complaint, lodged on July 21, 2026, in the US District Court for the Eastern District of New York, targets the nine firms and eight individuals described as their nominal owners.
The insurer contends the companies functioned as a coordinated operation controlled by an unidentified individual referred to in the filing as a "Secret Owner." GEICO alleges the group utilized a "quick hit" billing strategy, where companies became active in sequence as others wound down to mask the scope of the scheme. The alleged timeline of activity spans from May 2024 through February 2025.
According to the filing, the defendants submitted bills for items such as cervical collars, lumbar-sacral supports, and orthopedic pillows. GEICO asserts the equipment was either not provided or was of low quality, yet was billed using high-value Healthcare Common Procedure Coding System codes.
The complaint further alleges that prescriptions were obtained through kickbacks and that some signatures belonged to providers who did not actually authorize the orders.
The lawsuit identifies several common operational threads linking the defendants. Bills were routed through a single entity, Ace Medical Billing Corp., and payments were reportedly converted to cash at check-cashing facilities in New Jersey. GEICO also alleges that none of the companies held the required Dealer in Products for the Disabled License from New York City, rendering them ineligible to collect No-Fault benefits.