American Transit Insurance Company has filed a lawsuit against All City Family Healthcare Center Inc., Bronx SC, LLC, and other entities, accusing them of engaging in a large-scale insurance fraud scheme.
The complaint, filed on December 17, 2024, in the U.S. District Court for the Eastern District of New York, details allegations involving fraudulent insurance claims under New York’s No-Fault Law.
According to the lawsuit, the defendants submitted fraudulent claims for unnecessary or non-existent medical services through improperly licensed ambulatory surgical centers (ASCs) in New York and New Jersey.
The plaintiff alleges that these ASCs were controlled by a group, including Anthony Degradi and Wayne Hatami, who are accused of operating the centers without proper medical oversight.
The lawsuit claims that, since 2009, the defendants defrauded American Transit Insurance Company of hundreds of millions of dollars by billing for services that were not performed or were medically unnecessary.
The complaint lists procedures performed at facilities such as Empire State Ambulatory Surgery Center and Fifth Avenue Surgery Center. The lawsuit also accuses the defendants of engaging in illegal kickback schemes with clinics that referred patients for the unnecessary procedures.
American Transit Insurance Company is seeking compensatory damages of more than $153 million and treble damages of over $459 million. The company also seeks to prevent the defendants from continuing their activities under New York’s No-Fault system.
The case is being handled by Manning & Kass, Ellrod, Ramirez, Trester LLP, and Cadwalader, Wickersham & Taft LLP. It is being heard under Case ID 1:24-cv-08606.