Federal Prosecutors Target Alleged $10 Million No-Fault Insurance Fraud Scheme

Federal prosecutors have charged three individuals with conspiracy in an alleged $10 million no-fault auto insurance fraud operation involving falsified medical billing. The scheme, as detailed in court filings, saw perpetrators use the names of licensed medical providers to bill insurers for expensive, sometimes unperformed, procedures. Funds were funneled through shell companies and controlled by the alleged fraudsters.

GEICO has also implicated Financial Vision Capital Group II, a firm co-founded by Frank Carone, Mayor Eric Adams’ former chief of staff, in a related civil lawsuit. The complaint accuses Financial Vision of aiding the fraud by advancing funds to providers and handling billing logistics. Carone and his firm deny knowledge of wrongdoing and claim they are victims of fraudulent misrepresentations by their business partners.

This case, coupled with other investigations involving Carone and his business dealings, highlights potential vulnerabilities in the no-fault auto insurance system, which allows individuals to claim up to $50,000 for medical costs from car accidents regardless of fault. The unfolding litigation and criminal charges could have significant implications for the regulation of no-fault insurance funding practices.