GEICO alleges New Jersey chiropractic office submitted thousands of fraudulent charges

By Noddy A. Fernandez | Jan 17, 2019

TRENTON, N.J. (Legal Newsline) – Two medical professionals and a chiropractic professional corporation in New Jersey are alleged to have wrongfully obtained $900,000 because of fraudulent no-fault insurance charges.

Government Employees Insurance Co., GEICO Indemnity Co., GEICO General Insurance Co. and GEICO Casualty Co. filed a complaint on Jan. 8 in the U.S. District Court for the District of New Jersey against Paul F. Lyons, D.C., P.A. doing business as Accelerated Healing Center, et al. over allege violation of New Jersey Insurance Fraud Prevention Act.

According to the complaint, since 2012, GEICO has received thousands of fraudulent no-fault insurance charges submitted by defendants in behalf of individuals who allegedly were involved in automobile accidents and were eligible for insurance coverage under GEICO no-fault insurance policies. 

The plaintiffs allege that the services provided were not medically necessary and instead were provided to financially enrich the defendants rather than to treat or otherwise benefit the individuals.

The plaintiffs request a trial by jury and seek judgment for damages in the form of disgorgement of the benefits paid in the amount not exceeding $900,000, plus costs, interest and such other and further relief as the court deems just and proper. They are represented by John Robertelli, Gene Y. Kang and others of Rivkin Radler LLP in Hackensack, New Jersey.

U.S. District Court for the District of New Jersey case number 3:19-cv-00241-AET-TJB

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