GEICO has sued four New York medical suppliers, alleging a $2.6 million No-Fault fraud scheme run through paper owners and a hidden controller.
The complaint, filed April 30, 2026 in federal court in the Eastern District of New York, names Go For Med Supply Corp., Snyder Med Supplies Corp., Tantemed Supply Corp., and 10 of 10 Med Supply Corp., along with their listed owners Zemfira Nurullina, Carlos Borja, Svetlana Blokhina, and Aleksandr Ladyzhensky. The plaintiffs are Government Employees Insurance Company, GEICO Indemnity Company, GEICO General Insurance Company, and GEICO Casualty Company.
GEICO says the four suppliers only looked independent. According to the filing, they were quietly controlled by an unidentified figure the complaint labels the Secret Owner - listed as John Doe Defendant "1" - while the four named owners signed the state and city paperwork as straw owners.
The carrier says the suppliers billed GEICO in sequence to stay below its radar. According to the complaint, 10 of 10 Supply ran from August 12 through September 27, 2024. Go For Supply took over from September 25 through November 20, 2024. Tantemed Supply picked up from February 27 through April 3, 2025. Snyder Supply closed out the cycle from April 9 through June 9, 2025.
The numbers add up fast. The complaint alleges 10 of 10 Supply billed more than $368,000 and collected more than $283,000. Go For Supply billed more than $723,000 and collected more than $469,000. Tantemed Supply billed more than $806,000 and collected more than $420,000. Snyder Supply billed more than $752,000 and collected more than $400,000. Another sum of more than $530,000 is still pending across the four.
The equipment, the complaint says, was the usual New York No-Fault catalog: cervical pillows, lumbar sacral supports, orthopedic car seats, personal massagers, bed boards, and egg crate mattresses.
GEICO alleges the suppliers obtained their prescriptions through collusive arrangements with clinic operators, identified in the filing as Clinic Controllers, who steered scripts from a rotating cast of providers. The complaint says the suppliers paid kickbacks and other financial incentives to keep the scripts flowing, and points to five clinics - sites on Ralph Avenue and Empire Boulevard in Brooklyn and three Bronx addresses on Southern Boulevard, Holland Avenue, and East Tremont Avenue. The complaint also says two of the suppliers, 10 of 10 and Tantemed, list the same Long Island City office address on their delivery receipts and assignment of benefits forms.
The patients, according to the complaint, were mostly minor fender-bender victims. GEICO says that despite different ages, conditions, and accidents, they walked out with virtually identical prescriptions. At the Ralph Avenue clinic, the carrier says, the standard set covered a cervical collar, cervical pillow, egg crate mattress or bed board, general use cushion, lumbar sacral support, and a thermophore - issued to nearly every insured regardless of injury.
GEICO also alleges the suppliers gamed the codes. The filing says they billed Healthcare Common Procedure Coding System (HCPCS) codes - the codes that drive payment for specific equipment - for higher-end items than they actually handed out. Where any equipment was delivered at all, the complaint says, it was inexpensive, poor-quality gear that qualified for far lower reimbursement than what was billed.
For items off the state Workers' Compensation Fee Schedule, the rule is straightforward. Under 11 N.Y.C.R.R. 68, Appendix 17-C, Part E, the cap is the lesser of the provider's acquisition cost plus 50%, or the usual and customary price charged to the public. GEICO alleges the suppliers' charges blew past both numbers.
The carrier also flags a licensing issue. New York City requires DME and OD suppliers to hold a Dealer in Products for the Disabled License from the Department of Consumer and Worker Protection. GEICO alleges the suppliers hid the Secret Owner's role on those applications. Under 11 N.Y.C.R.R. § 65-3.16(a)(12), a provider that fails local licensing requirements "is not eligible for reimbursement" under New York's No-Fault rules - a hook the carrier is using to argue the suppliers were never entitled to a dollar.
The complaint runs to 15 causes of action, including two RICO counts under 18 U.S.C. § 1962(c) and 1962(d), common law fraud, unjust enrichment, aiding and abetting fraud, and a declaratory judgment under 28 U.S.C. §§ 2201 and 2202. GEICO is asking for treble damages, punitive damages, attorneys' fees under 18 U.S.C. § 1964(c), and a ruling that it owes nothing on the more than $530,000 still unpaid.
The carrier also takes aim at how these schemes endure. According to the complaint, the suppliers retained law firms to pursue collection through numerous individual proceedings filed piecemeal against GEICO and other insurers - an approach the filing says is designed to obscure the broader pattern, since a single arbitrator or judge handling one bill is unlikely to spot a fraud scheme that spans many patients and many clinics.
The allegations have not been tested in court. None of the defendants has filed a response, and no court has ruled on the claims.
