Geico Accuses NY Pharmacy Of $1M No-Fault Insurance Fraud

Law360 (December 4, 2019, 9:40 PM EST) -- Geico sued New Century Pharmacy in federal court Wednesday, alleging it conspired with health care providers to conduct a "massive, ongoing" fraud scheme by using New York's "no-fault" insurance law to submit over $1 million in false claims for illegally compounded pain relief drugs.

New Century Pharmacy Inc. orchestrated a yearslong scheme to bill the automobile insurance company for unnecessary and excessive pharmaceutical treatments at "one-stop-shop medical mills" in Queens and the Bronx that disguised themselves as legitimate health care practices to take advantage of the state's no-fault law, Geico said in the lawsuit.

The pharmacy partnered with licensed medical practitioners, including...

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