GEICO files RICO lawsuit in Florida
LAKELAND, Fla., June 29, 2016 – In a lawsuit filed on June 9, GEICO has sued five companies and six known individuals engaged in a complex scheme to submit hundreds of suspected fraudulent glass repair bills for payment. In the case, Government Employees Insurance Company, et al. v. Jason Fry, et. al., filed in the U.S. District Court for the Middle District of Florida, GEICO seeks to recover damages under the Civil RICO statutes and the Florida Consumer Protection Statutes. GEICO also seeks a declaration that any pending claims are not owed.
GEICO's lawsuit alleges that customers' information was taken or used without their knowledge or consent in order to create invoices for non-existent repairs, which were then submitted to GEICO. In addition to billing for services not provided, the suit alleges that GEICO was billed for services that had no repair value and were unnecessary.
"GEICO has a zero tolerance policy when it comes to insurance fraud. Fraud against insurance companies is not a victimless crime; it hurts consumers through increased premiums and can unfairly harm the reputation of legitimate companies" said Ryan West, GEICO’s vice president of claims. "Legislative reform in this area is long overdue."
West went on to say that GEICO will take decisive and immediate action against any individual seeking to commit fraud, and this litigation represents a preview of further lawsuits that GEICO intends to file to protect its customers and the public from the harm caused by those who engage in fraud.
GEICO (Government Employees Insurance Company), the second-largest auto insurer in the U.S., was founded in 1936 and insures more than 28 million vehicles.
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