Liberty Mutual says a New York clinic network quietly run by laypersons billed it more than $845,000 in bogus auto injury claims.
That is the thrust of a lawsuit the insurer filed on April 20, 2026 in federal court in Brooklyn, opening a new front in the long-running battle between auto carriers and the medical billing mills that orbit New York's No-Fault system.
The case, brought by Liberty Mutual and nine affiliated carriers, names six provider entities - a medical practice, three chiropractic offices and two physical therapy operations - along with the licensed professionals whose names sat on the door and a group of unlicensed individuals described in the filing as the "Management Defendants." All of them allegedly operated out of two multi-disciplinary clinics in Queens, one on Rockaway Boulevard in Jamaica and another on Merrick Boulevard in Rosedale. On paper, the practices looked like ordinary providers treating drivers hurt in crashes. Behind the scenes, according to the filing, they were something else entirely.
Liberty Mutual says the scheme started as early as 2021 and "continues uninterrupted through the present day." More than $845,000 has already gone out the door, the insurer claims, with another $474,000 in bills still pending.
How did it work, according to the filing? The unlicensed operators allegedly recruited doctors, chiropractors and physical therapists willing to "sell" the use of their professional licenses, then used those licenses to set up practices they secretly owned and controlled. That matters because New York's No-Fault rules, specifically 11 NYCRR 65-3.16(a)(12), say a clinic that is not genuinely owned and controlled by a licensed professional simply is not entitled to get paid.
The services billed read like a familiar No-Fault menu - initial and follow-up exams, outcome assessment tests, nerve block and trigger point injections, chiropractic adjustments and physical therapy. Liberty Mutual alleges the treatment was driven by pre-set protocols designed to maximize profits, not by what any given patient actually needed, and in some instances was "illusory" - that is, never really performed at all.
For claims and SIU teams, this is the kind of fact pattern that keeps pinging the radar - clinics sharing space, overlapping patient rosters and billing that looks a little too neat. Liberty Mutual is asking the court to declare that the pending bills do not have to be paid, to order the return of what has already been paid, and to award triple damages under the federal racketeering statute.
None of this has been tested in court. The defendants have not yet responded, and every allegation remains just that - an allegation - until a judge or jury says otherwise. Still, for insurers watching New York's No-Fault landscape, the filing is another reminder that the ownership question behind a provider's letterhead can be worth a lot more than the bills stapled to it.
