GEICO Takes Legal Action Against Brooklyn Pharmacy for $3.5 Million in Alleged No-Fault Insurance Fraud

GEICO has filed a federal lawsuit against Best Care Pharmacy of New York, accusing the Brooklyn-based pharmacy and its owners of submitting more than $3.5 million in fraudulent No-Fault insurance claims. The lawsuit, filed on July 22 in the U.S. District Court for the Eastern District of New York, also names the pharmacy’s owners, Maksym Fedotov and Ilya Bronstein, along with unidentified co-defendants. GEICO claims the defendants targeted New York’s No-Fault system by billing high-cost topical medications that were not medically necessary.

At the core of GEICO’s complaint is the allegation that Best Care Pharmacy issued prescriptions such as Lidocaine ointments and Diclofenac gels in large volumes through a scheme involving template prescriptions and repeat drug use. The insurer says these prescriptions lacked legitimate medical justification and were driven by profit margins, not patient health. Additionally, the lawsuit outlines that the pharmacy’s actions led to ‘therapeutic duplication,’ where similar medications were prescribed simultaneously—raising both cost and patient safety concerns.

GEICO is seeking to recover the $1.18 million it has already paid and to avoid paying another $1.4 million in pending claims from the pharmacy. Notably, GEICO also argues that Fedotov violated a prior federal injunction that barred him from submitting claims to the insurer, adding to the seriousness of the allegations.

The suit brings multiple charges, including violations of the federal RICO Act, common law fraud, and breach of insurance regulations under New York law. While the claims remain unproven, the case reflects the increasing scrutiny insurers are placing on billing practices under the No-Fault system—particularly when pharmacies and medical providers are involved in suspected coordinated fraud schemes.