“The driving force behind the Defendants' scheme is to exhaust their unsuspecting patients' limited no-fault benefits, without regard to whether the patients may have health insurance that might otherwise cover some or all of Physicians Group's charges, thereby preserving their no-fault benefits for other medical services that the patients may truly need,” State Farm alleges.

The suit also name two men, David Balot and William Sigelakis, owners of “shell companies” set up to “facilitate the illusion that ASK-GARY is an independent and legitimate” operation. Sigelakis, Kompothecras' cousin, is owner of WS Marketing, formed in 2007. WS allegedly owns and operates ASK-GARY.

The Physicians Group calls the lawsuit “frivolous and malicious.” In a statement, the group says the litigation is a “desperate act by State Farm,” and the insurer will “be exposed to claims for malicious prosecution by pursuing this absurd action.”

Physicians Group says State Farm owes more than $9 million on more than 1000 claims. The healthcare group also says ASK-GARY does not refer all accident victims to it, and attorneys are not required or advised to send clients to the Physicians Group.

State Farm says it has a sworn affidavit from an attorney who received referrals from ASK-GARY.

Kompothecras and his businesses are alleged to have violated several state laws and, therefore, treatment and services provided by ASK-GARY and the Physicians Group was not lawful, says State Farm.

The insurer is seeking a declaratory judgment to ensure it is not on the hook to pay bills submitted since 2005, when Kompothecras registered the ASK-GARY trademark.