Federal Court Won’t Dismiss GEICO’s RICO Claims

GEICO can bring claims under the Racketeer Influenced and Corrupt Organizations (RICO) Act for an alleged scheme to bill the insurer for medically unnecessary or nonexistent services provided to GEICO customers, a federal judge in New Jersey has ruled (Gov’t Emps. Ins. Co. v. Korn, 2015 BL 295995, D.N.J., 1:14-cv-05742-JEI-KMW, 9/14/15).

In a Sept. 14 opinion, Judge Joseph E. Irenas of the U.S. District Court for the District of New Jersey denied a motion to dismiss brought by the owners and operators of a group of medical practices that allegedly billed GEICO $5.6 million for services that ...