GEICO is taking a Brooklyn pharmacy to court, alleging it billed millions of dollars in fraudulent claims under New York’s No-Fault auto insurance system.
On July 22, Government Employees Insurance Company, GEICO Indemnity Company, GEICO General Insurance Company, and GEICO Casualty Company filed a complaint in the US District Court for the Eastern District of New York. The lawsuit names Best Care Pharmacy of New York, its owners Maksym Fedotov and Ilya Bronstein, and several unidentified individuals listed as John Doe Defendants “1” through “10.” According to the filing, Best Care Pharmacy submitted more than $3.5 million in allegedly fraudulent claims tied to auto accident patients.
The complaint focuses on how New York’s No-Fault system provides up to $50,000 in personal injury benefits per accident, regardless of who was at fault. GEICO alleges Best Care Pharmacy exploited that framework by targeting high-cost topical medications – specifically Lidocaine 5% ointment, Diclofenac Sodium Gel 3%, and Lidothol 4.5–5% patches – and billing for them in large volumes. The insurer says these prescriptions were issued without medical necessity and chosen for their profit margins rather than patient care.
GEICO also claims the pharmacy worked with prescribing healthcare providers and unlicensed clinic operators tied to multidisciplinary No-Fault clinics. According to the lawsuit, these arrangements led to the use of preprinted template prescription forms and repeat prescribing of the same limited set of drugs. The complaint further alleges “therapeutic duplication,” where multiple medications from the same class were prescribed at the same time – something GEICO argues increased costs and raised safety concerns.
The amounts in dispute are significant. GEICO says it has already paid about $1,184,000 on the claims and is asking the court to declare it does not owe another $1,407,000 in pending bills submitted by Best Care Pharmacy. The filing also notes that Fedotov was previously subject to a permanent injunction in an earlier federal case barring him from submitting any billing to GEICO, which the insurer now alleges has been violated.
The lawsuit includes claims under the federal Racketeer Influenced and Corrupt Organizations (RICO) Act, along with common law fraud, unjust enrichment, and breach of the earlier injunction. It also cites New York’s insurance regulations, particularly 11 N.Y.C.R.R. § 65-3.16(a)(12), which bars reimbursement to providers that fail to meet licensing requirements.
As with any newly filed case, these are allegations, not court findings. The filing underscores GEICO’s push to challenge what it describes as a coordinated scheme – and could influence how insurers handle disputed pharmacy claims under New York’s No-Fault framework.
