Geico suit alleges no-fault fraud

Officials at the Woodbury regional office of the insurance company Geico have filed three lawsuits against New York City medical firms that, the company said, filed fraudulent claims.

The lawsuit also targets a number of Long Island lawyers who, Geico says, were "accomplices in the fraudulent scheme" of a medical supply company.

One of Geico’s suits names the law firm Rapuzzi, Palumbo and Rosenberger PC, of Wantagh, which, the lawsuit claims, "actively has participated in and has been among the primary drivers of the defendants' fraudulent scheme."

Edward Blodnick, of Garden City, an outside lawyer retained to represent the law firm of Rapuzzi, Palumbo and Rosenberger PC, said Geico’s lawsuit is “totally without merit. It’s a retaliatory action against my client.”

The company seeks to recover "more than $9 million in compensatory and treble damages under the Federal RICO statute and New York common law as well as orders prohibiting the payment of more than $8 million dollars in unpaid claims that remain pending from the alleged activity."

Seth Ingall, Geico's regional vice president for New York operations, said no-fault fraud is rampant in New York City.

Geico, short for Government Employees Insurance Company, is owned by Berkshire Hathaway Inc.

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