GEICO Files Racketeering Suit Over Multi-Million Dollar Pharmaceutical Billing Scheme

 Thursday, June 10, 2021

 Insurance Business

GEICO is suing a New York-based pharmacy company for its alleged role in an insurance billing fraud scheme.

The insurer filed a civil RICO lawsuit through its representative Rivkin Radler LLP, naming SMK Pharmacy Corporation, dba Nature’s First Long Term Care and Compounding as the defendant.

The lawsuit also names the pharmacy owners Alexander Burlak, Marc Kassman, Kim Volman, and Simon Field as additional defendants in the lawsuit.

In a copy of the complaint obtained by ALM for Law.com, GEICO alleged that the defendants perpetrated a ‘massive fraudulent scheme’ by exploiting New York’s no-fault insurance system to submit over $4,023,200.00 in falsified pharmaceutical billing.

The insurer also specifically accused the defendants of submitting thousands of fraudulent charges for payments related to medically unnecessary pain prescription drug products, which included topical compounded pain creams, topical pain gels and ointments, as well as topical pain patches.
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