GEICO FILES RACKETEERING LAWSUIT OVER PHONY GLASS REPAIR CLAIMS

Berkshire Hathaway’s Geico motor insurance unit has sued five companies and six individuals in Florida on allegations that they engaged in a complex scheme to submit hundreds of claims for glass repairs that were never performed. Geico filed the suit in US District Court for the Middle District of Florida under Civil Racketeer Influenced and Corrupt Organisation statutes and Florida consumer protection statutes. The carrier alleges that customers’ information was used or taken without their knowledge and consent in order to create phony invoices and that it was billed for services that were unnecessary or had no repair value. “Geico has a zero-tolerance policy when it comes to insurance fraud,” said vice-president of claims Ryan West. “Fraud against insurance companies is not a victimless crime; it hurts consumers through increased premiums and can unfairly harm the reputation of legitimate companies. Legislative reform in this area is long overdue.” The case is Government Employees Insurance Company, et al v Jason Fry, et al.