Plaintiffs Accuse New York Pharmacy of Multi-Million Dollar Fraud Scheme


U.S. District Court for the Eastern District of New York | Official Website

In a recent legal filing, a major insurance company has accused a New York pharmacy and several individuals of orchestrating an elaborate scheme to defraud the insurance system. The complaint was filed by Government Employees Insurance Company (GEICO) in the United States District Court for the Eastern District of New York on November 26, 2025, against United Pharmacy NYC Inc., Irina Alishayeva, Gaetan Jean-Marie, N.P., Shai Bikel, N.P., and ten unnamed defendants.

The lawsuit details how GEICO alleges that the defendants exploited New York's "No-Fault" insurance system by submitting over $4 million in fraudulent pharmaceutical claims. These claims were primarily for expensive topical prescription drugs and a costly combination oral medication dispensed to individuals involved in automobile accidents. GEICO asserts that these prescriptions were medically unnecessary and part of a premeditated plan to maximize profits without regard for patient care. The defendants allegedly engaged in unlawful referral arrangements to funnel large volumes of prescriptions to United Pharmacy.

According to the complaint, United Pharmacy is purportedly operated as a neighborhood pharmacy but is alleged to be central to this fraud scheme. The pharmacy targeted specific high-cost pharmaceuticals like Lidocaine 5% Ointment and Diclofenac Sodium Gel 3%, among others. The fraudulent activities reportedly began in 2023 when Alishayeva partnered with known figures in No-Fault insurance fraud to ensure prescriptions were directed towards United Pharmacy. GEICO claims that approximately 84% of billing submitted through United Pharmacy was for these fraudulent products, with individual prescription charges reaching as high as $2,686.

GEICO seeks recovery of approximately $2.3 million already paid out due to these alleged fraudulent activities and requests a declaration from the court stating they are not obligated to pay an additional $1.4 million in pending claims related to these schemes. They argue that the pharmacy billed them for drugs that were not only unnecessary but also prescribed under illegal financial arrangements designed purely for profit.

The legal filing highlights multiple violations of New York laws governing pharmacies and healthcare providers, including engaging in collusive financial arrangements prohibited under New York Public Health Law §238-a(1)(a). It also points out breaches of regulations requiring legitimate medical necessity for prescriptions under No-Fault insurance reimbursement laws.

Representing GEICO are attorneys Michael A. Sirignano, Barry I. Levy, Joshua D. Smith, and Joanna Rosenblatt from Rivkin Radler LLP based in Uniondale, New York. The case is presided over by judges at the Eastern District Court of New York under Case ID: 1:25-cv-06576.

Source: 125cv06576_GEICO_v_United_Pharmacy_NYC_Inc_Complaint_Eastern_District_New_York.pdf

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