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February 26, 2021
On Thursday, the court denied a motion to dismiss a case brought by GEICO against AFO Imaging, Inc. et al. The case, filed in the Middle District of Florida, deals with two alleged fraudulent schemes: one that alleged the AFO imaging centers submitted thousands of charges for medically unnecessary and possibly falsified radiology services for patients that had been involved in low speed collisions with minor injuries, and another alleging the services were provided without the proper review of a medical provider, violating Florida business laws regarding supervision of medical practices.
The opinion recounted that n the aftermath of a motor vehicle accident, diagnostic testing including MRIs are frequently required to determine the extent of the injury and create a treatment plan. However, in low-speed accidents, the soft tissue injuries that occur frequently do not require extensive diagnostics for the creation of a treatment plan. In the suit, GEICO alleged that the services provided by AFO were medically unnecessary and performed solely for the purpose of increasing the billing to GEICO and supporting other spurious claims. This lead to GEICO filing the complaint for civil RICO, alleging that the AFO corporation was a corrupt organization that perpetuated fraudulent billing for the purposes of theft from insurance companies and also stood in violation of Florida licensing rules for medical practices