GEICO says a Florida chiropractor and his two clinics ran a $1.25 million no-fault billing scheme - and it wants the money back.
The auto insurer laid out its case in a federal lawsuit filed May 5, 2026, in the US District Court for the Southern District of Florida. The defendants are Adrian Sagman, a licensed chiropractor; his practice, Adrian Sagman, D.C., P.A., which does business as Miramar Medical Center; and a second entity he owns, Dorsal Rehab, Inc. According to the filing, the two clinics submitted thousands of Personal Injury Protection (PIP) charges since 2020 for services GEICO says were medically unnecessary, exaggerated, unlawfully performed, or in some cases never performed at all. None of these allegations have been tested in court.
For claims professionals, the script will sound familiar. GEICO contends that much of the "physical therapy" billed by the clinics was actually delivered by massage therapists and unlicensed or unsupervised staff - something Florida's No-Fault Law and Physical Therapy Practice Act do not allow. To paper over that, the insurer alleges, the clinics put Sagman's name in Box 31 of the HCFA-1500 forms as the treating or supervising provider.
Then comes the math problem. GEICO points to multiple days when Sagman supposedly personally performed or directly supervised somewhere between 18 and 22 hours of treatment in a single day, across the two clinics, for as many as 14 different patients. The insurer calls those numbers "non-credible."
The suit also accuses Sagman of running a two-clinic structure for the wrong reasons. Miramar Medical and Dorsal Rehab share an address but use separate tax IDs, which GEICO alleges allowed him to spread the billing around and avoid drawing attention - while quietly self-referring patients between the two for physical therapy, in violation of Florida's Patient Self-Referral Act. The insurer further claims neither clinic qualified for the Clinic Act's "wholly owned" exemption because Sagman did not actually supervise their business operations, and that the clinics routinely waived PIP deductibles, which GEICO says made it easier to keep patients returning for unnecessary treatment.
There is a coding angle, too. Initial examinations were typically billed under CPT 99204, a code generally reserved for patients with moderate to high severity problems, even though most of the insureds had been in drivable-vehicle accidents and, according to the filing, were not treated at any hospital. Follow-up visits were billed under 99213 and 99214. GEICO argues the exams involved no real medical decision-making and produced cookie-cutter soft tissue diagnoses no matter who walked through the door.
The insurer is bringing nine claims, including civil RICO counts, common law fraud, unjust enrichment, and a request for a declaration that the clinics are owed nothing on the bills still pending. It is seeking treble damages, punitive damages, attorneys' fees, costs, and interest on top of what it says it has already paid out.
The defendants have not yet filed a response, and no court has ruled on any of GEICO's claims.
