GEICO has filed a federal lawsuit accusing a New York medical supplier of orchestrating a scheme that defrauded the auto insurance industry of more than $620,000 through inflated and unnecessary no-fault insurance claims. 

The complaint, filed August 27 in the US District Court for the Eastern District of New York, names Advanced Supplies of NY Corp., its owner Tatyana Linnik, and a group of unidentified co-conspirators.  

GEICO alleges the defendants submitted hundreds of fraudulent bills for durable medical equipment and orthotic devices—including cervical collars, lumbar supports, and positioning cushions—that were either medically unnecessary, never provided, or misrepresented to inflate reimbursement rates. 

According to GEICO, the scheme began no later than April 2023 and relied on securing prescriptions from healthcare providers at no-fault clinics in the New York City area. The insurer claims the prescriptions were obtained through kickbacks and collusive arrangements, often using photocopied or duplicated provider signatures.  

Bills submitted to GEICO and other insurers allegedly misrepresented both the medical necessity and the nature of the equipment dispensed, often by manipulating Healthcare Common Procedure Coding System (HCPCS) codes to bill at higher rates. 

GEICO says the defendants billed it for more than $950,000 and wrongfully collected over $620,000. The company is also asking the court to declare that it is not required to pay an additional $200,000 in pending no-fault claims tied to Advanced Supplies. 

The lawsuit asserts claims for declaratory judgment, violation of the Racketeer Influenced and Corrupt Organizations (RICO) Act, common law fraud, and unjust enrichment. GEICO contends Advanced Supplies functioned as the billing arm of the scheme, while Linnik directed operations. The unnamed defendants are described as individuals tied to medical offices and referring providers who allegedly profited from the fraud. 

Under New York’s no-fault insurance system, insurers must provide up to $50,000 in personal injury protection benefits for medical expenses, including durable medical equipment, when prescribed by a licensed provider.  

GEICO alleges the defendants systematically abused these provisions to enrich themselves at the expense of insurers and policyholders.