GEICO is going after a Florida medical clinic with one of the most potent weapons in civil litigation: federal racketeering law.
The insurer filed suit on January 22, 2026, in the United States District Court for the Southern District of Florida, accusing New Medical Group, Inc., its owner Ledia Zapata, and medical director Luis Felipe Verdecia, M.D. of orchestrating a fraudulent billing operation that allegedly siphoned more than $2,350,000 in personal injury protection payments over several years. The case remains in its early stages, and the defendants have not yet had the opportunity to respond to the allegations.
At the heart of the matter is GEICO's decision to invoke the Racketeer Influenced and Corrupt Organizations Act, a federal statute typically associated with organized crime prosecutions but increasingly wielded by insurers battling suspected fraud rings. The filing paints a picture of a Doral-based clinic that allegedly existed not to treat patients, but to generate insurance claims.
According to the lawsuit, the scheme traces back to at least 2019. GEICO alleges that thousands of fraudulent charges flowed through New Medical Group, all submitted via mail as part of what the insurer describes as a continuous pattern of illegal activity. The filing asserts that Zapata ran the operation while Verdecia served as medical director in name only, appearing at the clinic just eight hours per month based on licensing documents from 2024.
The allegations strike at a persistent vulnerability in Florida's no-fault insurance system. Under state law, medical services must be provided lawfully to qualify for PIP reimbursement. GEICO contends that New Medical Group failed this basic standard on multiple fronts.
Perhaps most notably, the lawsuit points to changes in Florida law that took effect in 2013, barring PIP payments for services rendered by massage therapists. GEICO claims the clinic had massage therapists perform physical therapy treatments, then disguised their involvement by listing a chiropractor named Anthony Gallo, D.C. on billing forms as the provider or supervisor. The filing suggests Gallo could not have actually performed or overseen the volume of services attributed to him.
The insurer is also seeking a court declaration that it owes nothing on more than $75,000 in pending claims from the clinic.
GEICO has brought six separate legal claims against the defendants, including the federal racketeering charges, violations of Florida's consumer protection laws, common law fraud, and unjust enrichment. The insurer wants compensatory damages, treble damages available under RICO, punitive damages, and attorneys' fees.
For the insurance industry, the case offers a window into how carriers are pushing back against alleged PIP fraud through aggressive litigation strategies. The use of RICO, in particular, signals a willingness to pursue maximum penalties against providers accused of systematic abuse.
The matter is now before the federal court in Miami. No determination on the merits has been made.
