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No Fault Insurance is a Formula For Insurance Fraud\\nPost 4703\\nGEICO, as a pro-active victim of insurance fraud, sued Jean-Pierre \\nBarakat, M.D., et al, alleging that Defendants defrauded GEICO in \\nviolation of the Racketeering Influenced and Corrupt Organizations Act \\n("RICO," 18 U.S.C. \\xa7 1962(c), (d)), by submitting hundreds of fraudulent\\n bills for no-fault insurance charges. Plaintiffs also allege common law\\n fraud and unjust enrichment and seek a declaratory judgment as to all \\npending bills.\\n\\nIn Government Employees Insurance Company, et al v. Jean-Pierre Barakat,\\n M.D. No. 22-CV-07532 (NGG) (RML), United States District Court, E.D. \\nNew York (January 2, 2024) the USDC provided an injunction.\\n\\nBACKGROUND\\n\\nGEICO, faced with at least 43 allegedly fraudulent no-fault claims from \\nhealth care providers, moved for a preliminary injunction to stay all 43\\n pending no-fault insurance collection arbitrations commenced against \\nGEICO by or on behalf of Defendants.\\n\\nIn New York, an insurer is required to provide certain no-fault \\ninsurance benefits ("No-Fault Benefits") to the individuals that they \\ninsure ("Insureds"). No-Fault Benefits cover up to $50,000 of necessary \\nhealthcare expenses that result from automobile accidents. These \\nbenefits are provided to ensure that injured victims of motor vehicle \\naccidents have an efficient mechanism to pay for and receive the health \\ncare services that they need.\\n\\nInsurers are only given 30 days to review and investigate claims before \\npaying those claims to avoid risk of penalty for denying or delaying a \\nclaim.\\n\\nOperation of the Alleged Scheme\\n\\nGEICO alleged that in 2021 Defendant Barakat was recruited by the John \\nDoe Defendants to participate in a complex fraudulent insurance scheme \\n\\n\\nBetween February 15,2021 and March 3, 2022, Barakat and the John Doe \\nDefendants used Defendant Patriot Medical to bill GEICO and other New \\nYork automobile insurers for an experimental treatment called ESWT.\\xa0\\xa0 \\nMoreover, Defendants submitted bills seeking more than \\n\\nEvidence of the Alleged Scheme\\n\\nIn support of its fraud claims, GEICO has submitted a "representative \\nsample" chart, totaling 1,371 entries of allegedly fraudulent no-fault \\nclaims submitted by the Barakat Practices. GEICO asserts that it has \\npaid at least $183,000.00 to the Barakat Practices in no-fault claims.\\n\\nDISCUSSION\\n\\nThe showing of irreparable harm is perhaps the single most important \\nprerequisite for the issuance of a preliminary injunction, and the \\nmoving party must show that injury is likely before the other \\nrequirements for an injunction are considered. The harm must be shown to\\n be actual and imminent, not remote or speculative.\\n\\nCONCLUSION\\n\\nFor the foregoing reasons, GEICO\'s motion to stay all pending no-fault \\ninsurance collection arbitrations by or on behalf of Defendants Patriot \\nMedical and JPB Medical waive their obligation to post security were \\ngranted.\\n\\nZALMA OPINION\\n\\nGEICO must be honored for its proactive conduct against fraud \\nperpetrators since it appears the state of New York is not concerned \\nabout fraud against insurers and will not prosecute the fraudsters. \\nUsing RICO not only will allow GEICO to work to defeat the fraudulent \\nclaims but will take the profit out of the crime by forcing the \\nfraudsters to pay the insurers for their fraudulent conduct. Other \\ninsurers, facing the same fraud, should jump in with GEICO to make the \\nfraud perpetrators understand that they will lose their criminal profits\\n and may find they will pay the insurers more than they stole.\\n\\n(c) 2023 Barry Zalma & ClaimSchool, Inc.\\n\\nPlease tell your friends and colleagues about this blog and the videos \\nand let them subscribe to the blog and the videos.\\n\\nSubscribe to my substack at \\nhttps://barryzalma.substack.com/publish/post/107007808\\n\\nGo to Newsbreak.com\\xa0 https://www.newsbreak.com/@c/1653419?s=01\\n\\n Go to the Insurance Claims Library \\u2013 \\nhttp://zalma.com/blog/insurance-claims-library.