Court Allows Defendant to Contest Insurance Fraud and Racketeering Charges
In a recent ruling, a federal judge has sided with Bradley Pierre, granting his request to set aside a default judgment in a civil racketeering case. The case, brought by the American Transit Insurance Company, accuses Pierre of orchestrating a complex, multi-million dollar insurance fraud scheme involving staged medical referrals.
Judge Rachel P. Kovner of the U.S. District Court for the Eastern District of New York adopted a magistrate’s recommendation to allow Pierre his day in court. The court found that Pierre presented a plausible defense and that reopening the case would not unduly prejudice the insurance company.
The lawsuit, filed in January 2024, alleges that Pierre masterminded a bribery scheme. The scheme involved payments to 911 operators and hospital employees to direct automobile accident victims to Rutland Medical P.C. and Nexray Medical Imaging, P.C., also known as Soul Radiology Medical Imaging. The insurer claims Pierre secretly controlled these entities, a violation of New York law. American Transit, a major provider of No-Fault liability insurance for taxis and livery vehicles, asserts it was defrauded through the submission of fraudulent insurance claims generated by this referral network.
After being served with the complaint in January 2024, Pierre failed to respond, leading the court to enter a default judgment against him. However, represented by new counsel, Pierre moved to have the default set aside, citing difficulties in retaining legal representation following his guilty plea in a related federal criminal case.
Magistrate Judge Cheryl L. Pollak recommended vacating the default. She noted that Pierre made good-faith efforts to secure legal counsel and did not deliberately ignore the litigation. Judge Pollak also determined that Pierre raised a potentially valid defense. Specifically, he denied exercising de facto control over the medical corporations.
Judge Kovner concurred, stating that courts generally prefer cases to be decided on their merits. The judge ordered Pierre to reimburse American Transit for reasonable attorney fees incurred while litigating the default issue. He must file a formal response to the complaint within 21 days.
About American Transit Insurance Company
Founded in 1979, American Transit Insurance Company (ATIC) specializes in commercial automobile insurance, particularly for livery vehicles like taxis and black cars. ATIC plays a crucial role in New York City’s transportation sector, providing coverage tailored to the specific risks and regulations of this market.
ATIC offers liability coverage, including bodily injury and property damage, as well as personal injury protection (PIP) and physical damage coverage. Their policies comply with New York State’s insurance mandates, addressing the high-density, high-traffic environment of New York City.
The company has developed a reputation for its hands-on claims handling approach. However, like other insurers in high-risk markets, ATIC has faced challenges including legal disputes over coverage denials. ATIC operates privately and competes against larger national and regional insurers in the commercial auto sector.
Case Name: American Transit Insurance Company v. Bradley Pierre, et al.
Case No.: 24-CV-360 (RPK) (CLP)
Court: U.S. District Court, Eastern District of New York
Judge: Rachel P. Kovner
Magistrate Judge: Cheryl L. Pollak
Plaintiff: American Transit Insurance Company
Defendants’ Counsel: Bradley Pierre represented by Cary Scott Goldinger and Adam B. Dressler
