One of the nation’s largest auto insurers is suing five companies and six individuals in relation to a complex scheme it says would have bilked hundreds of payments for fraudulent glass repair bills for payment.
In the June 9 lawsuit filed in the US District Court for the Middle District of Florida, GEICO alleges that customers’ information was taken or used without their knowledge in order to create invoices for non-existent repairs. The bills were then submitted to GEICO for payment.
The insurer says it was also billed for services that had no repair value and were unnecessary. It is seeking to recover damages under the Civil RICO and Florida Consumer Protection Statutes, as well as a declaration that any pending claims are not owed.
“GEICO has a zero tolerance policy when it comes to insurance fraud,” said Ryan West, vice president of claims for the insurer. “Fraud against insurance companies is not a victimless crime; it hurts consumers through increased premiums and can unfairly harm the reputation of legitimate companies.”
West also called for legislative reform, and promised that GEICO would take “decisive and immediate” action against any individual seeking to commit fraud.
The company also hopes to file further lawsuits in order to protect customers from those who engage in fraud.
The case is Government Employees Insurance Company, et. al. v. Jason Fry, et. al.
GEICO insures more than 14 million private passenger customers and more than 23 million vehicles.
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