Government Employees Insurance Co. et al v. Spectrum Neurology Group, LLC et al

Filing 100

ORDER ADOPTING REPORT AND RECOMMENDATIONS, For the reasons set forth above, GEICO's request for default judgment, including entry of declaratory judgment is granted. Damages are awarded as set forth in the report and recommendation, and the decl aratory judgment provides that pltffs are not obligated to pay any outstanding fraudulent claims that Premier submitted to them for reimbursement. The Clerk of Court is directed to enter judgment for pltffs against Premier Health Services in the amou nt of $353,832.96, and against Premier Professional Services in the amount of $147,671.22, as well as awards of prejudgment interest at a rate of 9% per annum from the dates listed in Tables 1 and 2 above, through the date of entry of judgment in this action. The Clerk of Court is further directed to close this case for administrative purposes. (Ordered by Judge Eric N. Vitaliano on 3/17/2016) c/m Fwd. for Judgment (Galeano, Sonia)

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UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NEW YORK
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GOVERNMENT EMPLOYEES
INSURANCE CO., GEICO
INDEMNITY CO., GEICO GENERAL
INSURANCE COMPANY, and GEICO
CASUALTY CO.,

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MEMORANDUM & ORDER
l 4-CV-5277 (ENV) (SMG)

Plaintiffs,
-againstPREMIER PROFESSIONAL
SERVICES, LLC and PREMIER
HEALTH SERVICES, LLC,
Defendants.

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VITALIANO, D.J.

Plaintiffs Government Employees Insurance Co., GEICO Indemnity Co., GEICO General
Insurance Company, and GEICO Casualty Co. (collectively, "GEICO") initiated this action
against numerous corporate healthcare providers, their owners, and several physicians, all of
whom, GEICO alleges, submitted, or knowingly participated in the submission of, fraudulent New
York no-fault insurance claims. (Campi., ECF No. I). By Memorandum and Order, dated
December 9, 2015, this Court referred GEICO's motion for default judgment against defendants
Premier: Professional Services, LLC and Premier Health Services, LLC (collectively, "Premier"),
to Chief Magistrate Judge Steven M. Gold for an assessment of the plausibility of the claims
against Premier, an inquest as to any resulting damages, and to make a report and recommendation
as to his findings. (Mem. & Order, ECF No. 97). On February 17, 2016, Chief Magistrate Gold
issued his report and recommendation (the "R&R"). (R&R, ECF No. 98). With the required notice
given, no party has filed objections to the R&R. For the reasons stated below, the R&R is adopted
in its entirety as the opinion of the Court.

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Legal Standard
In reviewing the report and recommendation of a magistrate judge, a district judge "may
accept, reject, or modify, in whole or in part, the findings or recommendations made by the
magistrate judge." 28 U.S.C. § 636(b)(l). A district judge is required to "determine de novo any
part of the magistrate judge's disposition that has been properly objected to.'' Fed. R. Civ. P.
72(b)(3). Where no timely objection has been made, the district court may adopt the report and
recommendation, "provided no clear error is apparent from the face of the record." Dafeng

Hengwei Textile Co. v. Aceco Indus. & Commercial Corp., 54 F. Supp. 3d 279, 283 (E.D.N.Y.
2014).
Discussion
As discussed in the R&R, Chief Magistrate Judge Gold found that plaintiffs adequately
established the defaulting defendants' liability and, for the most part, sufficiently supported their
requests for damages and a companion declaratory judgment. He recommended that: ( 1) the
motion for default judgment be granted, (2) judgment be entered against Premier Health Services
in the amount of $353,832.96, and against Premier Professional Services in the amount of
$14 7 ,671.22, in addition to an award of prejudgment interest as described below, and (3) the
Court enter a declaratory judgment providing that plaintiffs are not obligated to pay any
outstanding fraudulent claims Premier submitted to GEICO for reimbursement. (R&R at 16).
Concerning prejudgment interest, Chief Magistrate Judge Gold noted that plaintiffs
"proposed a more conservative calculation method than that allowed under New York law," and
he recommended calculating the award in accordance with their preferred method. (R&R at 13).
Specifically, GEICO requested prejudgment interest on the following amounts at the rate of 9%

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per annum accruing from the first day following the year in which the fraudulent payments were
made, through the date of entry of judgment:
Table 1. Premier Health Services, LLC
Amount Paid
Billing Year
$3257.25
2004
$33,491.69
2005
$44,500.41
2006
$23,253.46
2007
$23,297.04
2008
$17,014.71
2009
$77,389.43
2010
$85,457.73
2011
$43,586.24
2012
$2585.00
2013

Date 9% Interest Begins to Run
January 1, 2005
January 1, 2006
January 1, 2007
January 1, 2008
January 1, 2009
January 1, 2010
January 1, 2011
January 1, 2012
January 1, 2013
January 1, 2014

Table 2. Premier Professional Services, LLC
Billing Year
Amount Paid
2004
$22,045.99
$21,746.72
2005
$23,904.33
2006
$24,142.31
2007
2008
$22,053.56
2009
$24,480.38
2010
$7957.53
2011
$1340.40

Date 9% Interest Begins to Run
Januarv 1, 2005
January 1, 2006
January 1, 2007
Januarv 1, 2008
January 1, 2009
January 1, 20 IO
January 1, 2011
January 1, 2012

The Court has now reviewed the R&R in line with the applicable clear error standard of
review, and finds it to be correct, well-reasoned, and free of any clear error. The Court,
therefore, adopts it in its entirety as the opinion of the Court.
Conclusion
For the reasons set forth above, GEICO's request for default judgment, including entry of
declaratory judgment, is granted. Damages are awarded as set forth in the report and

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recommendation, and the declaratory judgment provides that plaintiffs are not obligated to pay
any outstanding fraudulent claims that Premier submitted to them for reimbursement.
The Clerk of Court is directed to enter judgment for plaintiffs against Premier Health
Services in the amount of$353,832.96, and against Premier Professional Services in the amount
of $14 7,671.22, as well as awards of prejudgment interest at a rate of 9% per annum from the
dates listed in Tables I and 2 above, through the date of entry of judgment in this action.
The Clerk of Court is further directed to close this case for administrative purposes.
So Ordered.

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Dated: Brooklyn, New York
March 17, 2016

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- ERtCN. VIlfALIANO
United States District Judge

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