RICO Violations by Health Care Providers Require Court to Enjoin Arbitrations
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Plaintiffs (collectively “GEICO”) sued Alexandr Zaitsev, M.D., Metropolitan Interventional Medical Services, P.C., and many others health care providers. GEICO alleged that defendants committed civil RICO violations, common law fraud, aiding and abetting fraud, unjust enrichment, and New Jersey Insurance Fraud Prevention Act violations. Additionally, GEICO sought a declaratory judgement that defendants may not recover on any of the outstanding bills submitted to GEICO. In Government Employees Insurance Company, et al. v. Alexandr Zaitsev, M.D., et al., No. 1:20-cv-03495-FB-SJB, United States District Court, E.D. New York (July 27, 2021) the USDC dealt with GEICO’s motion for a preliminary injunction to (1) stay all of defendants’ pending no-fault insurance collection arbitration against GEICO and (2) enjoin the defendants from commencing any new no-fault insurance collection arbitration or litigation against GEICO, pending the disposition of GEICO’s claims in this action.
Insurance fraud is estimated to take between $80 and $300 billion every year. Insurance companies are mandated by Insurance Fraud Acts and Regulations to work to defeat insurance fraud. GEICO – unable to get assistance from the state – is proactive against health care providers who it believes are attempting to defraud it. By filing a RICO action and obtaining an injunction against the health care providers it is hitting them where it hurts, in their pocket books. If they succeed they will take the profit out of fraud. If they don’t they will pay the claims. If they succeed the local prosecutors should consider criminal prosecution of each of the health care providers.