Allegations in Focus
Per the press release from ATIC:
“The federal court complaint … alleges that the defendants sought to take advantage of New York’s no-fault auto insurance laws … These substantial possible no-fault recoveries can incentivize providers with ill intent to over-diagnose, over-treat, and over-bill to recover the most money for themselves.”
Specifically concerning Dr. Hostin, the lawsuit claims he received “kickbacks” by holding an “investment interest” in the Empire State Ambulatory Surgery Center, benefiting from referrals and overcharging for surgeries. Two of Hostin’s cited patients were reportedly involved in minimal-impact car collisions yet both ended up receiving arthroscopic surgeries, suggesting, according to the lawsuit, unnecessary or exaggerated medical procedures to inflate insurance claims.
The Larger-Than-Life RICO Suit
RICO, short for the Racketeer Influenced and Corrupt Organizations Act, is a powerful federal tool typically used to dismantle organized crime. That’s exactly what has stunned observers here: this civil RICO suit lumps together more than 180 defendants, including physicians, ambulatory surgical centers, and various healthcare entities accused of orchestrating a large-scale fraud network. The possibility of facing triple damages—one of the unique facets of RICO—underscores the severity and high stakes of this case.
If convicted under RICO, Dr. Hostin could face more than just a massive financial penalty; he could potentially serve prison time, which would make him—yes, ironically—a convicted felon. That label would place Sunny Hostin in a very awkward spot, given her well-documented criticisms of individuals like Donald Trump who carry numerous felony indictments.
