A Brooklyn-based personal injury attorney allegedly ran a massive scheme that used staged car accidents to drive up insurance payouts, according to a new, bombshell lawsuit — that comes as Gov. Kathy Hochul ramps up her campaign to crack down on such scams.
FedEx filed the 92-page suit Tuesday accusing the Ikhilov Law Group and its owner, attorney Zorik “Erik” Ikhilov, of running a sophisticated ring also involving doctors and medical providers that aimed to bilk the delivery giant through bogus liability claims.
“The staged accidents, coordinated medical referrals, and rapid escalation to injections or surgeries all serve a single purpose which is manufacturing the statutory prerequisites necessary to commence a personal injury action,” states the Manhattan federal court filing.
The group allegedly staged or exaggerated vehicle wrecks and routed phony victims through rounds and rounds of medical treatments to inflate medical bills and target FedEx and the company’s “deep pockets,” according to the suit.
“Filing such a suit is the only path to the substantial recoveries the enterprise seeks to extract,” the court papers state.
The case is being brought under the Racketeer Influenced and Corrupt Organizations, RICO, Act, usually used to go after gang and mob operations.
It comes as Hochul has been pushing her proposal to alter New York’s liability statute, which has become a particularly thorny sticking point holding up the state budget which is over a week late with no end in sight.
“To all the legislators claiming fraud doesn’t exist, here’s your proof,” Tom Stebbins, Executive Director, Lawsuit Reform Alliance of New York, wrote in a statement to The Post.
“This case should be required reading in Albany. New York’s liability laws enable and reward lawyer-led criminal enterprises.”
The suit lays out four cases in which the “enterprise” allegedly sought to milk FedEx through bogus claims, including one involving a minor accident where one of the company’s delivery drivers tapped the bumper of another vehicle at a red light.
Photographs taken by the driver showed minimal damage to either vehicle and first responders weren’t called.
But the claimant, two days later, went to a doctor connected with Ikhilov’s alleged scheme where he was diagnosed with much more severe injuries and directed to chiropractic care at the same clinic, the suit states.
He would go on to receive several surgeries at the referral and hand of other doctors named in the scheme. Meanwhile, he was paying for these procedures using a loan from a law firm also with connections to Ikhilov, that was allegedly providing kickbacks to the doctors and other schemers, according to the suit.
“FedEx is committed to protecting our customers and team members from fraudulent behavior,” a company spokesperson said in a statement. “We have filed this litigation to address concerning patterns in certain auto accidents and medical claims.”
While he faces accusations in the suit that he shepherded clients through unnecessary spinal surgeries, Ikhilov boasts on his Instagram about receiving a bougie custom office chair from “1-800-Accident” emblazoned with his initials.
A man who answered a phone number listed for Ikhilov Wednesday said something unintelligible before hanging up.
Hochul, meanwhile, was in the Big Apple on Wednesday, using the New York International Auto Show as a backdrop for the ongoing debate. She announced new efforts to coordinate between state financial regulators and the state police to identify and prosecute fraud rings like the ones FedEx alleges of Ikhilov.
“We’re talking about a few sophisticated criminal enterprises, networks of drivers, lawyers and medical providers who are staging elaborate crashes in order to have jackpot payouts,” she told reporters.
Hochul is proposing changing the legal definition of “serious injury” to cut down on the number of frivolous and fraudulent claims as well cap the amount of damages victims can receive in cases where they’re uninsured or convicted of impaired driving or a felony in connection with an accident.
The state Legislature has so far refused to budge much, dug in around the argument that they err on the side of protecting victims, even if an accident is their fault.
“That’s a pretty serious thing for people to accept. I mean, accidents do happen. People have been in accidents and it’s your fault, and if you get severely injured under this, you won’t be able to get pain and suffering,” Assembly Speaker Carl Heastie (D-Bronx) told reporters late last week, acknowledging the sticking point.
Others contend that Hochul’s proposal doesn’t guarantee that the changes will result in lower insurance rates for drivers.
“If we’re all talking about high insurance rates, which we definitely want to combat, putting more money in the pockets of insurance companies doesn’t accomplish that goal unless you make sure it ends up with consumers,” Senate Deputy Majority Leader Mike Gianaris told reporters Tuesday.
But Hochul is entrenched on the issue as a plank in her “affordability” platform.
“They’re going to do it. They have to do it,” Hochul said Wednesday of the resistance from legislative leaders.
The pro-litigation New York State Trial Lawyers Association, the largest lobby group for the sector, and one with deep connections amongst legislators, has been fiercely opposed to the proposal.
Uber has also turned heads, reportedly shoveling a massive $8 billion into pushing in favor of the effort.

Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.

