GEICO says a Queens pharmacy exploited crash victims for profit, billing more than $2 million for pain products the insurer calls fraudulent.
In a complaint filed July 16, 2026, in the Eastern District of New York, the four GEICO companies accuse Central RX Pharmacy Corp. and its sole owner - along with ten unnamed "John Doe" defendants - of running what the filing calls a "large, ongoing fraudulent scheme" that exploited New York's No-Fault auto-insurance system.
The mechanics matter for claims teams. New York's No-Fault laws require auto insurers to pay up to $50,000 per insured for necessary care, and patients can assign those benefits to providers who bill the insurer directly. GEICO alleges the pharmacy used that channel to submit more than $2 million in inflated claims.
The complaint says the pharmacy leaned on a short list of high-priced products - Lidocaine 5% Ointment, Diclofenac Sodium Gel 3% and Naproxen-Esomeprazole - which it labels the "Fraudulent Pharmaceuticals," accounting for more than 75% of its GEICO billing. Lidocaine prescriptions typically ran $1,392.00 to $1,905.00, and Diclofenac $2,358.00 each.
According to GEICO, the pharmacy bought these products cheaply but billed at "egregiously high" wholesale prices, exploiting the state's Pharmacy Fee Schedule, while over-the-counter lidocaine selling for roughly $10 to $20 went unrecommended. The filing also alleges the pharmacy paid "kickbacks or other financial incentives" to prescribers and unlicensed clinic operators who steered prescriptions to it, in violation of Public Health Law § 238-a. About 84% of the insureds lived outside Queens, where the store sits.
GEICO also says the drugs followed "predetermined fraudulent protocols" rather than genuine patient need - pointing to matching prescriptions for people hurt in the same crash - and notes that the statutory NF-3 claim forms carry a warning that a false submission "commits a fraudulent insurance act, which is a crime."
The insurer seeks about $997,800.00 it says it already paid and a declaration voiding roughly $613,100.00 in pending claims, alongside civil RICO, common law fraud, unjust-enrichment and Section 238-a claims. It asks that its RICO damages be trebled to $2,993,400.00.
None of the allegations have been tested in court, and no judge has ruled on any of the claims.
